If financial incumbents want to be part of the modernization of financial markets, they need to adopt blockchains, according to Bernstein.
Beyond tradeable assets like bitcoin, however, there's an opportunity over the next five years for financial firms in tokenizing real-world assets on blockchains, the firm said in a note this week.
"Tokenization, we believe, will transform financial markets over the next decade," analyst Gautam Chhugani said in the Tuesday note.
"We forecast ~$5 trillion of real-world financial assets will be tokenized on blockchains over the next 5 years."
There is also a big opportunity for new business verticals in custody, trading, trade finance and enterprise consulting, Chhugani said.
Persons:
Bernstein, Cryptocurrencies, there's, Gautam Chhugani, Chhugani, Hamilton Lane, Franklin Templeton, Michael Bloom
Organizations:
Investment, KKR, Securitize, JPMorgan
Locations:
tokenizing, stablecoins