According to Cynthia Wu, the COO of Matrixport, almost every real-world asset class could be tokenized as a non-fungible token (NFT) within the next five to ten years. Wu believes that storing and trading real-world assets on-chain would make them more liquid and tradable, leading to better price discovery and transaction activity. While the digital collectibles niche has seen some NFT transaction activity, it hasn’t significantly contributed to institutional adoption. However, Wu remains confident that this will change.
A recent report from the Boston Consulting Group (BCG) estimated that the total size of tokenized illiquid assets could reach $16.1 trillion by 2030. BCG predicts that pre-IPO stocks, real estate, private debt, and revenue from small to medium-sized businesses will drive much of this tokenization. Financial institutions have shown interest in the tokenization of real-world assets, but some have been hesitant to move away from legacy systems. Wu explained that traditional financial systems have not accounted for the trading of non-fungible assets, but blockchain provides a solution. She highlighted the benefits of blockchain infrastructure, including cost efficiencies, improved liquidity, 24/7 market access, and the elimination of intermediaries.
Matrixport, founded in February 2019, currently manages $3-4 billion in digital assets for both retail and institutional clients.