Sergey Nazarov, founder of Chainlink, recently stated that the current cryptocurrency market cycle is unique due to the sheer number of new types of investors entering the market, which could accelerate the implementation of real asset tokenization faster than initially anticipated by the industry.
Speaking to Bloomberg on February 28, Nazarov pointed out that new participants in the cryptocurrency market are outpacing the retail customers who react to media hits on cryptocurrency price fluctuations. He explained that new buyers are coming from all sectors of the global financial system: “The question to ask is who are the new buyers in this cycle, and the new buyers are the global financial system, which is a very, very large group of new buyers.”
New Buyers and the Adoption of Real Assets Tokenization
Real asset tokenization is the process by which real assets such as real estate, shares or securities are represented and exchanged as digital tokens on blockchains. This technology is seen as a potentially transformative means for the financial industry, enabling greater accessibility and fluidity of assets.
The Global Financial System as “New Buyers
The global financial system, as “new buyers”, represents an impressive group of new investors entering the cryptocurrency market. This group includes financial institutions, governments and other major economic players. As of October 2023, the US government is one of the largest holders of Bitcoin (BTC), with over 200,000 BTC. As of the publication date of this article, this is worth around $12.4 billion.
Future perspectives
The growing presence of the global financial system in the cryptocurrency market underscores the growth and maturity of the industry. Investors and financial industry professionals must remain alert to market developments and new trends to take advantage of the growing adoption of blockchain technology and the tokenization of real assets.
