Wall Street Put $350 Billion on Blockchain; Most of It Is Doing Nothing
Summary
Wall Street has placed about $350 billion worth of assets on blockchain technology by turning them into digital tokens. However, most of these tokenized assets are not actively traded or used outside the issuer’s control, limiting the technology’s potential benefits.Key Facts
- Tokenization means creating a digital token on a blockchain to represent ownership of an asset.
- About $359 billion in assets have been tokenized and placed on blockchains.
- Only around $31.5 billion of these tokenized assets can be freely traded, moved, or used as collateral.
- Most tokenized assets today can only be bought from and sold back to their issuers, not traded openly.
- The European Central Bank (ECB) now accepts some blockchain-issued securities as collateral for loans to commercial banks.
- This acceptance by the ECB marks the first time tokenized securities are used beyond their issuer’s platform.
- Despite the increase in tokenized assets, actual usage and market activity remain low.
- Industry reports often focus on total tokenized value instead of how actively these tokens are used.
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