Here’s an infographic that shows the estimated size of various asset classes.
Crypto is only $2.5T All these assets combined are > $500T. Most of these assets will get tokenized over the next decade or two, and the protocols that tokenize them will capture a lot of that value.
Why would we want to tokenize assets like stocks?
– Globally accessible, tradeable 24/7/365 – Transparency – Verifiable ownership (unlocks doors like voting / rewards) – Programmable asset is infinitely more useful (collateral, derivatives, automation, direct transfers, etc)
Why tokenize real estate?
– Fractionalized investing – Globally accessible, tradeable 24/7/365 – Diversification through bundling – Add liquidity to illiquid market – Reduced friction of transactions – Plug into smart contracts to collateralize, create derivatives, etc
The general idea is that programmable assets that can plug into smart contracts are infinitely more useful than the legacy versions of these assets.
@mirror_protocol already allows users to trade tokenized synthetic stocks Unlike regular stocks on an exchange like the #NYSE, tokenized stocks can be: - Traded globally 24/7/365 by anyone - Farmed for yield (20-30%+ currently) - Used in smart contracts
I'll be posting a much more detailed thread about @mirror_protocol
in the coming week, including: - A step-by-step guide on how it works - How you can use it to farm for rewards.