Home/Finance/Asset Tokenization/Introduction

Tokenized Assets

How blockchain turns illiquid real-world assets into tradable tokens—unlocking $16 trillion in new liquidity

Your Progress

0 / 5 completed

←

Previous Module

Banking as a Service (BaaS)

The $16 Trillion Unlock

Most valuable assets in the world are illiquid. Real estate, private equity, fine art, rare collectibles—trillions locked up because you can't easily divide ownership or trade shares. Want to own 0.5% of a Manhattan skyscraper? Impossible. Until now.

Tokenization turns physical assets into blockchain tokens, each representing fractional ownership. One $50M building becomes 50 million $1 tokens. Suddenly, illiquid assets trade 24/7 with instant settlement. The $16 trillion question: which assets tokenize first, and who captures the value?

Why Tokenization Matters Now

Illiquid assets dominate global wealth but exclude most investors:

Traditional Model

• High minimums ($100K-$5M+)

• Accredited investors only

• Years to exit (5-10 year lockups)

• Expensive intermediaries (lawyers, brokers)

• Opaque pricing (no real-time markets)

Tokenized Model

• Low minimums ($10-$100)

• Retail access (democratized)

• Instant liquidity (24/7 trading)

• Smart contracts (automated compliance)

• Transparent pricing (on-chain data)

💎The Core Insight

Tokenization isn't about creating new assets—it's about unlocking liquidity in existing ones. A $50M building doesn't become more valuable when tokenized. But 50M people can now own a piece, trade instantly, and use it as collateral. The asset stays the same. The market transforms.

Market Size: What's Being Tokenized

Boston Consulting Group estimates $16 trillion in tokenized assets by 2030:

Real Estate

$9.1T

Commercial, residential, REITs

Bonds

$3.5T

Corporate, government, structured

Commodities

$2.1T

Gold, oil, agriculture, carbon credits

Art & Collectibles

$1.3T

Fine art, watches, wine, rare items

Who's Actually Making Money? The Value Chain

Tokenization creates a new stack of intermediaries. Here's who captures value:

🏆

Winner: Tokenization Platforms (30-40% revenue)

Securitize, Harbor, tZero provide issuance tech + compliance. Charge 3-5% of asset value upfront + 0.5-1% annual. Sticky revenue (can't easily switch once tokenized).

💼

Winner: Asset Custodians (20-30% revenue)

Coinbase Custody, Anchorage hold tokenized assets. Earn custody fees (0.5-1.5% AUM annually). Regulated entities capture institutional trust premium.

⚖️

Winner: Legal/Compliance (15-20% revenue)

Law firms structure SPVs, navigate securities law. Charge $100K-$500K per issuance. Regulatory moat protects margins (compliance can't be automated easily).

📊

Loser: Traditional Intermediaries (displaced)

Real estate brokers, art dealers, bond traders losing 5-25% commissions to smart contracts. $100B+ annual fees at risk. Can't compete with 24/7 automated markets.

The Liquidity Premium: Why Tokenization Adds Value

Illiquid assets trade at a discount. Tokenization captures that premium:

Private Equity Discount

20-30%

Private company shares trade 20-30% below equivalent public companies purely due to illiquidity. Tokenized shares with secondary markets can capture 10-15% of that discount.

Real Estate Liquidity Penalty

15-25%

Properties that take 6-12 months to sell command lower prices. Tokenized real estate with instant liquidity reduces this penalty to 5-10%, unlocking billions in value.

Art Market Spread

25-40%

Auction houses take 25% fees + buy/sell spread. Tokenized art with peer-to-peer trading reduces this to 2-5%, making art investment viable for wealth preservation.

The math: $16T in assets × 15% average liquidity premium = $2.4 trillion in unlocked value. This isn't speculation—it's captured inefficiency from removing friction.