Bernstein: Tokenization Could Reach $5 Trillion in the Next Five Years

Tokenization is the process of converting real-world assets into blockchain-based Tokens, Bernstein said in a research note on Tuesday, adding that the benefits of tokenization are the operational efficiencies and increased liquidity and accessibility that come with the process. Bernstein estimates that tokenization could be as large as $5 trillion in the next five years, led by stablecoins and CBDCs, private market funds, securities and real estate. The report says that cryptocurrency tokenization through stablecoins and CBDCs will be applied to on-chain deposits and payments, and that about 2 percent of the global money supply will be tokenized over the next five years, or about $3 trillion.