NewsGlobalRootstockLabs: Tokenisation of Real-World Assets to Drive Crypto Growth Despite Market VolatilityRootstockLabs: Tokenisation of Real-World Assets to Drive Crypto Growth Despite Market Volatility
Richard Green from RootstockLabs expresses optimism about the cryptocurrency market's long-term outlook, despite recent volatility. He cites increasing institutional participation and the trend towards tokenisation of real-world assets as key growth drivers. Major banks like Citi, Société Générale, and Western Union are testing blockchain-based products. Green anticipates significant progress in asset tokenisation between 2024-2026, with opportunities in private credit and fixed income segments. Large asset management firms, including Franklin Templeton and Apollo, are also exploring tokenisation applications.
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Richard Green from RootstockLabs has expressed optimism about the long-term outlook of the cryptocurrency market, despite recent volatility. Green believes that institutional participation and the trend towards tokenisation of real-world assets will be key drivers for growth in the crypto sector.
Market Sentiment and Global Factors
According to Green, the current market caution can be attributed to several global events:
- Upcoming US Federal Reserve meeting
- US-China tariff discussions
These factors have led to what Green describes as a 'holding pattern' in trader sentiment.
Institutional Involvement in Blockchain
Major global banks are increasingly testing blockchain-based products, signaling growing institutional interest in the technology. Some notable partnerships include:
| Bank | Crypto Partner |
|---|---|
| Citi | Anchorage Digital |
| Société Générale | Coinbase |
| Western Union | Various firms |
These institutions are not viewing blockchain merely as a platform for speculative assets. Instead, they see it as foundational technology with potential applications in:
- Improving back-office systems
- Enhancing payment networks
- Optimizing data tracking
Tokenisation: The Next Growth Phase
Green anticipates that the tokenisation of real-world assets will drive the next phase of growth in the crypto market. He projects a timeline for adoption:
| Year | Expected Progress |
|---|---|
| 2024-2025 | Initial progress |
| 2026 | Broader adoption |
Companies like Securitise are already building regulated infrastructure for asset tokenisation. Green sees particular opportunities in:
- Private credit
- Fixed income segments
These areas could benefit from blockchain technology by:
- Improving efficiency
- Enabling 24/7 trading
Asset Managers Exploring Tokenisation
Large asset management firms are also beginning to explore tokenisation applications:
- Franklin Templeton
- Apollo
This interest from established financial institutions further underscores the potential of tokenisation in the broader financial landscape.
While the crypto market may be experiencing short-term volatility, the increasing institutional involvement and the potential of asset tokenisation suggest a promising long-term outlook for the sector. As always, investors should conduct their own research and consider their risk tolerance when making investment decisions in this evolving market.
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