How Poor Countries Could Lead the Way in Tokenizing Real Stuff
Emerging Economies Take the Lead
In 2026, countries with growing economies might lead the way in turning real-world assets into digital tokens. This is the prediction of Jesse Knutson, a prominent figure at a major crypto exchange. He argues that these nations have a significant advantage due to their frequent struggles with accessing capital and investments.
The Power of Fractionalization
Converting real-world assets into digital tokens democratizes investment opportunities. For instance, an individual might not afford an entire building but could purchase a fraction of it. This process, known as fractionalization, makes investing more accessible to the masses.
Diverging Trends
- Developed Countries: Focus on tokenizing government bonds and money market funds.
- Developing Countries: Prioritize real estate and commodities, aligning with local understanding and value systems.
Challenges Ahead
Despite the potential, several hurdles remain:
- Legal Framework: Ensuring digital contracts are legally binding and enforceable.
- Liquidity: Maintaining sufficient market activity to prevent value depreciation.
- Investor Protection: Establishing robust regulations to safeguard investors.
Interoperability Issues
The current landscape is fragmented, with different blockchains operating under distinct rules. Achieving interoperability requires a consensus on basic standards to facilitate seamless token transactions across platforms.
The Trillion-Dollar Opportunity
If these challenges are addressed, the market for tokenized real-world assets could burgeon into a trillion-dollar industry. However, this potential hinges on major corporations transitioning from pilot projects to full-scale commercialization.
