Trade Finance To Be A Key Force In $30 Trillion Tokenized Assets Market

A new paper published by Synpulse and Standard Chartered revealed that demand for the total tokenized assets could extend to $ 30.1 trillion by 2034. The report also shows that trade finance assets could be one of the three most popular tokenized assets worldwide, making up about 16%.

Trade Finance Assets Are Set To Make About 16% Of The Total Global Assets

Global trade is expected to reach $ 32.6 trillion by 2030. Because of this, along with more industries using digital methods and the unique qualities of real trade finance assets, it’s a perfect choice to create tokens.

According to the update, the overall value of tokenized assets (not counting stablecoins) was around $ 5 billion at the beginning of this year. Furthermore, almost all tokenized assets are traditional assets like money market funds and US treasuries. However, the sector from which all these assets originated is just in its developing stages.

Trade finance assets are an excellent way to spread out risk. However, significant investment has yet to be witnessed because many individuals aren’t familiar with them, they take a lot of work to manage, and their prices aren’t always the same.

The latest report shows that tokenization might solve the problems surrounding trade finance assets. It could also ensure everyone has the same information and show investors precisely what’s happening.

Tokenization In Trade Finance Aims To Address A $2.5 Trillion Gap In The Sector

Tokenization in trade finance is viewed as a chance to deal with the increasing gap in the sector, which experts think is about $2.5 trillion worldwide. Besides making it easier to enter markets and making supply chains more robust and flexible, it also helps reach suppliers further down the supply chain.

Standard Chartered’s Global Head of Trade, Kai Fehr, said the firm thinks the next three years are crucial for tokenization. He specifically spoke about trade finance assets becoming a significant new type of investment.  Fehr noted that to make the most of this huge chance, everyone, including governments, banks, investors, and regulators, must work together.

Fehr said banks need to start helping connect the old-fashioned money markets with a new market that uses tokens. He also mentioned that Standard Chartered is among the top five banks worldwide which offer trade finance services. It is actively involved in projects like Project Dynamo and Project Guardian.

The Chief Executive Officer and Managing Partner of Synpulse Group, Yves Roesti, discussed the recent update. He thinks turning real-world assets into digital tokens is more than a trend.

Roesti said digital asset tokenization is a strong force that will improve global trade finance. The company is dedicated to leading this growth. It collaborates with others in the industry to build systems and plans to make tokenized real-world assets successful.