Editor's note: The potential for cryptos goes far beyond simply using them as currency. As our colleague, crypto expert Eric Wade, explains, we're starting to see real-world assets being bought and sold on the blockchain. In this piece – adapted from a recent issue of Crypto Capital – he explains why this could transform industries... and why it bodes well for the future of cryptos.

Real Assets Are Changing the Future of Cryptos

By Eric Wade, editor, Crypto Capital

In October 2018, the St. Regis Aspen Resort became the first of its kind...

To raise money for renovations, the luxury resort's owners decided to sell fractional ownership of the hotel through the Ethereum blockchain.

Digital "Aspen Coins" were priced at $1 each. And accredited investors had to buy at least 10,000 of them to participate. In total, the hotel raised $18 million by selling 18.9% of its ownership to individual investors.

It was the first major tokenized real estate sale in the U.S. But it definitely wasn't the last.

And as you'll see today, the growing appeal of tokenized real-world assets ("RWAs") shows we're just beginning to capitalize on the broad potential of cryptos...

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A more-than-$30-million Manhattan development followed the St. Regis' lead shortly after, financing the project by selling its own tokenized coins.

Since then, we've seen commercial real estate, multifamily homes, and even churches offer tokenized ownership on the blockchain.

You see, the blockchain makes buying and selling real estate simple and accessible. Investors don't have to deal with title transfers, red tape, middlemen, and all the fees. And you can often invest in large properties for a few hundred or thousand dollars.

That's why the tokenized real estate market is taking a bigger and bigger piece of the estimated $634 trillion global real estate pie. Boston Consulting Group predicts the tokenized real estate market will grow from around $2.7 billion in 2022 to $16 trillion by 2030.

Many traditional companies could benefit from tokenizing RWAs. When real estate companies tokenize real estate for fractional ownership, small investors from around the world can purchase tokens that represent a percentage of a property. This allows the company to raise capital more quickly.

But real estate is just one RWA finding its way onto the blockchain.

We've recommended tokenized wine, gold, and diamonds in my Crypto Capital service before, and even a blockchain-based lending platform for institutional lenders and borrowers.

Tokenization is also revolutionizing the art world. Famous paintings like Andy Warhol's "14 Small Electric Chairs" have been sold to investors through fractional ownership.

And investment-bank companies can issue tokenized bonds or equities, allowing for real-time, secure, and transparent investing.

BlackRock CEO Larry Fink believes bonds and stocks will also soon find their way to the blockchain.

These are huge markets...

In 2023, the U.S. bond market was estimated to be worth more than $51 trillion. And the U.S. stock market is estimated to be worth more than $55 trillion today. London Stock Exchange Group estimates global markets are worth $1.09 quadrillion.

There's also a lot of money in bringing new stocks and bonds to the market...

In 2023, U.S. public entities alone issued around $400 billion in municipal bonds. Meanwhile, the U.S. IPO market raised $19.4 billion.

Big banks earn a fee for every one of these offerings. According to Forbes, underwriting fees typically range from 2% to 7% of the offering. Altogether, investment banks around the world collected around $106 billion in underwriting fees during 2023 alone.

In other words, like real estate, the stock and bond markets are filled with inefficient and expensive middlemen and costly regulatory red tape. That's why investors and companies are looking for alternative solutions... like the blockchain.

And while these middlemen enjoy massive incomes, real estate and investment banking are fragmented industries with lots of participants. So there's no barrier preventing a new participant from entering the market.

Today, we're seeing the beginning of a revolution in the real estate, collectibles, stock, and bond markets. Thanks to the blockchain, exchanging these assets can be simple, accessible, transparent, secure, and regulatory compliant.

It's bridging the worlds of traditional finance and decentralized finance. That's why massive gains are possible in the near future.

Good investing,

Eric Wade

Editor's note: According to Eric, the crypto revolution we're seeing today will play out over decades... But likely as soon as January 20, he believes the entire crypto market is going to shift toward mainstream adoption – and much, much higher prices. Don't miss what might be the last great opportunity to get in and say you were early to crypto... Click here to learn more.