According to PANews, Bank of America has released a report indicating a shift in investor focus towards the tokenization of real-world assets (RWA), such as stocks, bonds, bank deposits, and real estate. While dollar-backed stablecoins continue to dominate, this transition marks the bank's journey towards fully blockchain-based transactions over the coming years.
The report emphasizes the need for extensive infrastructure development to facilitate this transformation, which promises a new era of 24/7 access across global jurisdictions, instant settlements, and enhanced liquidity, all supported by compliance-assured smart contracts.
A notable example highlighted in the report is the Dubai Land Department's recent launch of a real estate tokenization platform. This initiative aims to digitize $16 billion worth of real estate assets by 2033, increasing accessibility to these traditionally illiquid assets through fractional ownership.
Analysts suggest that as blockchain technology becomes more widespread, traditional banking operations, such as Citi's transaction services, which account for 40% of profits, may face challenges. However, the market might be underestimating the banks' ability to adapt to technological advancements. The report concludes that the push for tokenization represents a significant milestone in the real-world application of blockchain technology.