Tokenization Hype Extends to Polygon: From Private Equity to Pokemon Cards – Riding a $4 Trillion Wave
With the Boston Consulting Group estimating the tokenization of real-world assets to be worth $16 trillion by the decade’s end, Polygon is fighting for its share of the pie. Polygon boasts some of the world’s largest companies tokenizing on its network, from $1.53 trillion asset manager Franklin Templeton to $500 billion Korean conglomerate Mirae. Tokenization [...]
- With the Boston Consulting Group estimating the tokenization of real-world assets to be worth $16 trillion by the decade’s end, Polygon is fighting for its share of the pie.
- Polygon boasts some of the world’s largest companies tokenizing on its network, from $1.53 trillion asset manager Franklin Templeton to $500 billion Korean conglomerate Mirae.
Tokenization is the latest hype in the blockchain world, but unlike any previous cycle, this one is rooted in some much-wanted real-world utility and could be worth trillions of dollars in a few years. Polygon is one of the ultimate destinations for tokenization, and with recent developments, it has become even more attractive.
In a recent deep dive into tokenization, Polygon talked about the rising interest in its platform, stating, “From money market funds to Pokemon cards, there has been an influx of projects bringing tokenized assets on-chain, flowing into the Polygon network of aggregated blockchains.”
— Polygon | Aggregated (@0xPolygon) March 6, 2024
Today, Polygon PoS is a “technical behemoth” that offers among the best fees in the market, and with ‘tons of users,’ it has achieved the critical mass required for global domination.
However, the greatest promise for Polygon lies in the future. One of its most transformative launches was with AggLayer. As Crypto News Flash reported, the unified bridge for AggLayer went live last month. In essence, AggLayer seeks to do for blockchain what TCP/IP did for the internet: provide a singular experience of ZK-secured Layer 1s and Layer 2s that feel like a single chain.
Polygon to Dominate Tokenization
According to Citigroup, over $4 trillion worth of real-world assets could be tokenized by 2030. The Boston Consulting Group is even more bullish, placing this figure at $16 trillion. This makes tokenization not just one of the lowest-hanging fruits for the blockchain industry but potentially one of its most profitable ones.
Some of the world’s most influential companies are jumping aboard the tokenization bandwagon, and they are choosing to build on Polygon. The biggest company exploring the network is Franklin Templeton, the California-based asset management giant with $1.5 trillion in assets under its management.
Templeton launched a tokenized money fund on Polygon a year ago, with the firm’s head of digital assets revealing that it picked Polygon for its “proven track record.”
A month before Templeton announced its venture, Pennsylvania-based alternative investment manager Hamilton Lane partnered with Securitize to open doors to investors in its $2.1 billion flagship fund, all on Polygon.
As Collin Butler, the head of institutional capital at Polygon Labs, said at the time, “…the tokenization of private funds is a massive leap forward for investors and fund managers.”
Others who have turned to Polygon include Sygnum Bank and Mirae Asset Securities; the latter is part of the Mirae Group, South Korea’s largest financial conglomerate with over $500 billion in assets under management.
As the world moves towards tokenization, only a network that scales without hiking fees, like Polygon, will be able to handle the millions of transactions that come with this new business.
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