Blockchain technology is on the rise, but its adoption remains relatively slow. Investment bank Citi recently published a research report on the subject. In her paper, she indicated that blockchain adoption is approaching an inflection point regardless. She also mentioned tools that can promote the adoption of this technology by the general public.
Here’s what blockchain needs for a major breakthrough
A study has previously shown that blockchain technology is now massively adopted by businesses. Now, a report from Citi indicates that mainstream blockchain adoption is approaching an inflection point. Researchers at the investment bank said this adoption could explode thanks to a critical use case. It is the tokenization of financial assets and the real world. On this, Citi researchers said:Almost anything of value can be tokenized“.
The bank indicated that by 2030, it could have $4 trillion of tokenized securities in the market. It also predicted up to $5 trillion of CBDCs in circulation in major economies around the world. Also, half of these assets could be linked to blockchain technology, according to Citi researchers.
Separately, Kathleen Boyle, Managing Editor of Citi GPS, discussed the mass adoption of blockchain technology. She asserted : “Blockchain adoption will be successful when over a billion users won’t even realize they are using the technology“.
Citi researchers cited a few tools for mainstream adoption of blockchain technology. In particular, they talked about decentralized digital identities, zero-knowledge proofs and secure bridges. They stressed the need to take regulatory considerations into account.
Citi’s predictions on tokenization agree with those of Larry Fink, the boss of BlackRock. Indeed, Fink has previously said that crypto-related technologies offer “exciting apps“. He then cited the tokenization of asset classes, an element on which he counts to maintain BlackRock despite the hard knocks. “The tokenization of asset classes offers the prospect of generating efficiencies in capital markets, shortening value chains as well as improving costs and access for investors“, he explained.
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