According to Cointelegraph, Colin Butler, head of global institutional capital at Polygon Labs, believes that the tokenization of real assets may become the killer application of cryptocurrency because it significantly reduces costs and settlement times, making it difficult for traditional financial institutions to ignore.

Butler pointed out that this technology has huge disruptive potential for the global financial system, which can improve capital efficiency and bring new business opportunities to financial institutions.

He gave the example of a fund manager's management business with slim margins, but tokenized assets can significantly reduce costs and become better collateral.

Butler emphasized that all financial companies, from small financial institutions to international clearing houses, will benefit from the significant reduction in costs and settlement times brought by tokenized assets.

Polygon executives said the real-world asset tokenization market represents a $30 trillion investment opportunity, with tokenized U.S. Treasury investments alone expected to exceed $3 billion by the end of 2024.

However, not everyone agrees with Butler’s assessment. Jamie Coutts, chief crypto analyst at Real Vision, believes that by 2030, the market size of real-world asset tokenization will be close to $1.3 trillion.

Even so, Coutts noted that even with these conservative numbers, real-world asset markets will have a significant impact on digital asset markets, bringing in new capital injections.