Ondo Finance’s Post

🌊 McKinsey & Company's new report - From ripples to waves: The transformational power of tokenizing assets! 📈 Tokenized financial assets are moving from pilot to at-scale deployment. Adoption is not yet widespread, but financial institutions with blockchain capabilities in place will have a strategic advantage. 🏦 Tokenized money market funds have attracted over $1 billion in assets under management, signaling demand from investors with on-chain capital in a high-interest-rate environment. Investors can choose from funds managed by established incumbents, such as BlackRock, WisdomTree, and Franklin Templeton, as well as Web3 natives such as Ondo Finance, Superstate, and Maple Finance. 💱 Tokenized money market funds will likely see sustained demand in a higher-interest-rate environment, potentially offsetting stablecoins as on-chain stores of value. Other types of mutual funds and ETFs could offer #onchain capital diversification to conventional financial instruments. 🙏 Thanks for the feature McKinsey & Company. Always nice to be in good company! https://lnkd.in/gzEAcqTK #OndoFinance #FutureofFinance #RWA #Tokenization

Navigating #Web3: Pioneering or Following? Business owners are seeing the trend of digital transformation and the world’s transition to Web3 along with a myriad of new opportunities and challenges it creates. More and more investors and key industry players navigate the challenges to leverage blockchain technologies to uncover untapped opportunities. In a recent report titled "From ripples to waves: The transformational power of tokenizing assets", McKinsey & Company compares the benefits and liabilities of #tokenization depending on stakeholder archetype: The #pioneers who accept risks and catch the early wave, and the late #followers, who wait for more certain signs of readiness from the market. There are risks and rewards for early movers: substantial upfront investment, technology adoption risks, and regulatory uncertainty. Late followers, on the other hand, enjoy more security but risk losing significant market share. ➡ Read on for more: https://lnkd.in/garHachf --- InvestaX's Licensed Tokenization SaaS platform offers a complete and regulatory-compliant solution for tokenizing real world assets (#RWA). Get in touch with us to discuss your tokenization strategy: https://lnkd.in/dipBFNke

🚨 The Transformational Power of Tokenising Assets 🚨 McKinsey & Company examines the growing impact of asset tokenisation, remarking blockchain capabilities as a significant strategic advantage for financial institutions. Here's what you need to know: 1️⃣ Increased Efficiency - Streamlining asset transactions with blockchain technology can reduce settlement times from days to minutes. It cuts down on the need for intermediaries, leading to faster, safer transactions, as well as lower operational costs. 2️⃣ Enhanced Liquidity - Converting physical assets into digital tokens permits fractional ownership. This approach enables trading traditionally illiquid assets like real estate and fine art, unlocking significant value and improving market liquidity. 3️⃣ New Revenue Opportunities - The advent of tokenisation leads to innovative financial products, such as tokenised funds and securities. This broadens participation from both retail and institutional investors, driving growth in AUM and creating new revenue streams. Asset tokenisation marks a significant shift towards a more efficient, transparent, and inclusive financial ecosystem, with potential long-term benefits for financial institutions. Read the full article here: https://lnkd.in/garHachf - - - Meet moreliquid. moreliquid is a digital assets platform that offers end-to-end services to asset managers for tokenised securities. ▶ Follow us, moreliquid ▶ Subscribe to our newsletter: https://lnkd.in/g2ZY8QTX

Tokenised Market: A $4 trillion Market Capitalisation McKinsey & Company recently published an extensive article detailing the potential, nuances and also challenges with tokenising assets, here are some of the key takeaways: 🟢 Stables like Cash and deposits, stablecoins, CBDCs are likey to lead the way in the adoption of tokenisation (think 24/7 settlement, shared ledger, “stable” store of value especially in a high interest rate environment) 🟢 On-chain collaterisation for lending & borrowing (money markets) that can disrupt conventional lending systems which often involve manual processes & labour (think automation with blockchain smart contracts) 🟡 Wave-based adoption of DLT, blockchain & tokenisation; heavily dependent on actual & perceived CBA, time to impact and risk appetite 🟡 Fractionalisation of asset classes which need fractionalisation, typical characteristics include huge upfront capital or long holding periods (think bonds, notes, and maybe even treasury bills?) 🔴 Tumultuous but not impossible task to modernise exisiting infrastructure, especially the financial industry, a space which is heavily regulated 🔴 Not all asset classes should or will be tokenised (possibly slower adoption) due to marginal benefits, lack of incentives & compliance obligations (think public traded equities - S&P500, NASDAQ, etc.) Excited as the team at PhillipCapital & Symphony Digital Assets carve out our strategic advantage and asset class based value proposition (minimum viable value chains) in the blockchain space.

After years of promise and experimentation, tokenised financial assets are moving from the pilot phase to at-scale deployment. McKinsey estimates that total tokenised market capitalisation could reach around $2 trillion by 2030. This shift seems increasingly inevitable, especially as the technology matures and demonstrates measurable economic benefits. Tokenisation’s rate and timing of adoption will still vary across asset classes due to various factors, with those asset classes that have a larger market value or a greater degree of friction along the value chain seeing the greatest benefits from tokenisation. Most notably, mutual funds, loans, and exchange-traded notes will likely see the greatest impact early on. #Blockchain #Crypto #FinTech

🔍 **From Ripples to Waves: The Transformational Power of Tokenizing Assets** 🌊 I highly recommend reading McKinsey's latest report, which delves into the fascinating world of asset tokenization. The article "From Ripples to Waves: The Transformational Power of Tokenizing Assets" explores how this innovative technology is reshaping the financial market and unlocking new investment opportunities. 💡 Asset tokenization involves converting real-world assets, such as real estate or artwork, into digital tokens. This process not only enhances liquidity and investment accessibility but also offers greater transparency and security in transactions. McKinsey highlights several key aspects: 1. **Increased Investment Accessibility**: Tokenization allows valuable assets to be divided into smaller units, making them more accessible to a broader range of investors. 2. **Enhanced Liquidity**: Digital tokens can be traded more easily and quickly than traditional assets, providing greater liquidity. 3. **Transparency and Security**: Blockchain technology ensures that all transactions are transparent and secure, reducing the risk of fraud. This article is a must-read for anyone interested in the future of finance and investment. The potential impact of asset tokenization is immense, and it's exciting to see how it will shape the industry in the coming years. 📖 Check out the full report here: [McKinsey - From Ripples to Waves: The Transformational Power of Tokenizing Assets](https://lnkd.in/dX6wxqvM) #Finance #Tokenization #Blockchain

Insightful report from McKinsey on the transformational power of tokenizing assets! Tokenization has reached a tipping point after many years of promise and experimentation. While it is currently focused on mutual funds, bonds, loans, and cash, the potential for growth is significant as technology matures and regulatory clarity improves. Key takeaways: - Successful tokenization requires coordination across financial institutions and infrastructure players. - Ongoing efforts are crucial to build interoperable blockchain networks. - Adoption will vary by geography and asset class, influenced by market conditions and regulatory frameworks. As infrastructure matures and regulatory clarity improves, the adoption of tokenized assets is expected to accelerate, offering substantial value to early adopters and disruptors. Download the report here: https://lnkd.in/dc4PpCzN Join us on 31 July for the next session of our online event series, "Tech Law Hacked: Behind the Scenes at KassaiLaw". We'll be discussing the case of a digital financial instrument. Details in our LinkedIn event: https://lnkd.in/dPEp5ugz #techlawhacked #techlaw #tokenisation #innovation

Tokenization is no longer just a buzzword—it's becoming more and more of a reality transforming trillions in financial assets monthly! As we step closer to a world where every stock, bond, and financial instrument finds a place on a distributed ledger, the benefits are becoming clearer: increased liquidity, operational efficiencies, and innovative revenue streams. The journey hasn’t been without its hurdles, but the path forward is promising, with money market funds, bonds, and credit leading the charge. What's driving adoption? The first wave of tokenization adoption is powered by asset classes with proven ROI, like cash and deposits, propelled by their efficiency and regulatory feasibility. More waves are to come. How to prepare? Be ready for your wave! But first the foundations need to be in place such as a common blockchain infrastructure, the willingness to embrace the shift, more accessibility to tokenized cash, and clarity around the regulatory landscape. The wave is here—are you ready to ride it? Read our latest perspective that I published along with my colleagues Matthew Higginson, Julian Sevillano, and Donát Rigó: https://lnkd.in/e35yRFPG #Tokenization #DigitalAssets #Blockchain #McKinseyInsights #Innovation #FutureOfFinance

The shift towards tokenizing financial assets represents a transformative leap from experimental phases to widespread implementation. While adoption remains gradual, financial institutions equipped with blockchain capabilities are poised to gain a strategic edge. Tokenization enhances liquidity, accessibility, and transparency in asset markets, streamlining processes traditionally burdened by intermediaries and inefficiencies. This evolution promises to democratise access to investment opportunities and unlock new avenues for capital deployment globally. As tokenized assets become more prevalent, their potential to reshape financial ecosystems and accelerate innovation is increasingly recognised, marking a pivotal moment in the evolution of digital finance. #DigitalAssets #Tokenization #FinTech

Tokenized financial assets are shifting from pilots to large-scale deployment, offering benefits like efficiency and transparency. Institutions with blockchain capabilities will have a strategic edge in this evolving landscape. A new report by McKinsey & Company explores how tokenization, creating unique digital assets on a blockchain, can empower financial institutions. Adoption is poised to accelerate, with tokenized assets transacting trillions monthly. The future promises around-the-clock availability, global collateral mobility, and more. Larry Fink of BlackRock envisions every financial asset on a shared ledger, indicating a transformative shift. By 2030, total tokenized market capitalization could reach $2 trillion, driven by adoption in various asset classes. Adoption will likely occur in waves, starting with proven use cases. Tokenization offers efficiency gains, liquidity increases, and new revenue opportunities. While challenges remain, early adopters stand to gain market share and set standards. Infrastructure modernization, regulation, and stakeholder coordination are key for broader adoption. Overcoming these challenges could reshape the future of financial services. Link to McKinsey's report: https://lnkd.in/garHachf