Matrixport predicts mass tokenization of assets in 5-10 years

According to the company’s co-founder Cynthia Wu, tokenization of traditional assets will greatly increase their liquidity

27.09.2022 - 11:15

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2 min

What’s new? Cynthia Wu, the co-founder of Matrixport, a crypto platform, believes that in the next ten years almost every asset class will be tokenized or represented in the form of non-fungible tokens (NFTs). In an interview with Cointelegraph, she said that “eventually, all the major financial asset classes are going to be represented on this new financial infrastructure [and] NFTs could be our instrument to represent off-chain assets like real estate deeds, equities or bonds.”

Cointelegraph’s material

What else did Wu say? The co-founder of Matrixport believes that tokenization of traditional assets will greatly increase their liquidity. Wu also noted that NFTs are mostly associated with digital collectibles, which in turn has not been conducive to their institutional adoption. Despite this, she is confident that things will change.

According to Wu, while the tokenization of financial assets has sparked interest among financial institutions, some are reluctant to give up old systems that have worked well for years. Wu noted that the traditional financial system has not accounted for the trading of NFTs because these tokens cannot be exchanged as easily as fungible or divisible assets. However, tokenization and blockchain can solve this problem.

Cynthia Wu called blockchain infrastructure more efficient than legacy systems. According to her, providing 24/7 access to the market and no intermediaries are the main factors that can streamline the financial system.

Matrixport was founded in February 2019. The platform provides trading, depositing, lending, and borrowing services. The company currently manages $10 billion in assets from a wide range of retail and institutional clients.

In September, investment firm Kohlberg Kravis Roberts (KKR) entered into a partnership with digital asset management firm Securitize to tokenize KKR’s $4 billion investment fund on the Avalanche blockchain.

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