Sergey Nazarov, co-creator of Chainlink (LINK), predicts a major merger between blockchain and the traditional global financial system in the near future. Speaking at the Consensus 2024 conference, Nazarov suggests that the market for on-chain assets is currently valued at over $100 trillion. He presents a chart indicating that assets such as the $2.7 trillion debt market and the $106 trillion stock market could potentially transition to blockchain technology. Additionally, global real estate and derivatives are seen as potential candidates for tokenization.
In his speech, Nazarov emphasizes that all financial transactions will eventually take place on-chain, with 2024 being the year in which the global financial system begins transitioning its settlement systems onto public blockchains. He envisions a future where all of the world’s value, credits, derivatives, commodities, and more are represented and composed on-chain, leading to the creation of advanced financial products in a quick and efficient manner. He highlights the increasing trend of real-world asset digital asset tokenization, which has now surpassed the value found in decentralized finance (DeFi). This shift is expected to result in faster transaction times, reducing waits from months to minutes or even seconds.
Nazarov points out that as more assets move onto the blockchain, they will become composable and can be integrated into more advanced financial products. This process of composition will lead to the creation of innovative financial instruments that offer unique benefits. He suggests that the industry is currently at a tipping point, with the numbers exceeding past records. Major institutions are beginning to explore ways to move their value onto blockchain networks. Nazarov predicts that the coming year will mark a significant shift in the industry, where public chains and the global financial system merge into a unified industry known as the “internet of contracts.”
To stay informed about the latest developments in the blockchain and financial industries, readers are encouraged to subscribe for email alerts and follow the company on various social media platforms such as X, Facebook, and Telegram. By staying connected through these channels, individuals can receive timely updates and insights into the evolving landscape of blockchain technology and its impact on the financial sector. As the industry undergoes a transformation towards greater integration of blockchain solutions, it is crucial for stakeholders to stay informed and adapt to the changing dynamics of the market. Embracing this shift towards on-chain transactions and asset tokenization can provide numerous opportunities for innovation and growth in the financial sector.
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