‘Trillions of dollars in assets’ could be moved to blockchain, insider says

The integration of blockchain into traditional financial systems is growing rapidly. Large institutions such as Citi, JPMorgan And MasterCard are making substantial investments, signaling a potential transformation of finance.

Ian Horneresponsible for content at Silver20/20shared his views on the change underway as the Benzinga, the future of digital assets event on November 19, where he will speak.

Horne noted that blockchain is increasingly entrenched in finance, affecting everything from payments to asset ownership. “It’s hard to argue otherwise as blockchain takes hold in payments and asset ownership,” he explained.

He cited Mastercard’s crypto card programs and Paypal, Revolution And BandEfforts to launch or expand stablecoin services as evidence of blockchain’s growing role in payments. Central banks are also making progress in the area of ​​digital currencies, including several central bank digital currency (CBDC) initiatives.

The integration of blockchain into payments aims to make cross-border transactions more efficient and less costly. Horne mentioned that this is particularly relevant for transactions involving multiple banks and varying business hours. Additionally, asset tokenization – turning real-world assets into digital tokens on a blockchain – could simplify the exchange of ownership.

“Estimates vary, but it is generally accepted that several trillion dollars of ‘real world’ assets will likely move to the blockchain,” he said. Tokenization not only facilitates faster transactions, but also enables fractional ownership, allowing investment in smaller portions of assets like real estate or wine.

Despite the potential benefits, Horne identified challenges in aligning blockchain with established financial infrastructure. These include the management of numerous blockchains, regulatory approval, and legacy systems that traditional finance relies on. “The challenges are many,” Horne noted, adding that true integration will require compromise on both sides.

Horne expressed optimism about blockchain’s role in improving transaction privacy and security, potentially reducing data breaches and identity fraud. As technology becomes more widespread, it could reshape finance by creating more accessible and secure systems.

As the digital assets market continues to mature, the convergence of regulatory changes, M&A activity, and adoption trends will define the future of this dynamic field. The Future of Digital Assets According to Benzinga The event to be held in New York on November 19 will provide industry leaders and investors with a platform to further explore these developments, providing insight into the evolving regulatory environment and the latest market dynamics.

Image: Mohamed Hassan from Pixabay