Tokenization will accelerate economic growth in the future.

Despite its shortcomings, the current surge in cryptocurrency markets demonstrates how much money will become more active throughout economic systems as a result of tokenization.

source
When you look at products like liquid staking and restaking, you get a sense of how the sector views "idle capital" and attempts to use it. Certainly, these notions have significant liquidity concerns, but there are practical ways to manage them so that value may be maximized without plunging into a liquidity crisis.These options exist because the ecology rejects inflexible financial structures. Tokenization allows billions of dollars of idle money to flow into a more flexible financial system.

Though I am not a fan, Ripple and the XRP Ledger are frequently cited in debates about idle conventional wealth.Although stories like this are sometimes outrageously biased, there are literally hundreds of blockchains that offer the same (or better) solutions as Ripple provides through the XRP Ledger.

The rationale for this conclusion is because the debate is usually about quick transactions and low costs. Hive literally has the same speed and no costs. Now, the second point is always about infrastructures, but I have yet to see any serious investigation into these so-called military-grade secure infrastructures enabling traditional institutions to interact with the XRP ledger.

The advantage of bringing finance on-chain becomes increasingly clearer when we abandon the notion that "capital" is crucial to "cash" or basically stable money. Given that money is simply a unit of account, whatever is purchased with it basically becomes the account's bearer, making it a capital good, particularly when utilized to produce more economic value.

This implies that everything we often refer to as "assets," even physical assets, become "capital," and the value they carry, which is normally idle, becomes capable of contributing to economic growth.Consider how many bitcoins lay idle, and how projects like Babylon strive to activate this idle money so that it may produce interest.

This applies to considerably more than simply digital things. Real estate, for example, contains enormous quantities of idle capital due to the nature of physical assets, and tokenization allows this to be converted into active value that can be leveraged across several economies.

This is what blockchain enables, and major companies like as Blackrock recognize this, which explains their recent increased interest in the market.