Putting real-world assets onchain opens up new markets, increases capital velocity and democratizes access to finance, advocates say.
Tokenization will transform the financial industry faster than digital technology disrupted legacy media, such as print newspapers, physical copies of music and other analog formats, according to Keith Grossman, president of crypto payments company MoonPay.
“While many feared digitization would destroy media, what it actually did was force its evolution,” Grossman said, adding that real-world asset (RWA) tokenization, the process of representing traditional assets onchain, will force traditional institutions to adapt. He added:
Financial incumbents like Citi, Bank of America, JPMorgan Chase and others will continue to exist in a different form, Grossman said, much like media companies continued to exist after the shift to digital distribution in the late 1990s and early 2000s, which disrupted business models that worked for decades.
