The Philippines has a huge opportunity in digital finance. According to a recent white paper, the country could be worth $60 billion by 2030 through the tokenization of assets. Additionally, almost half of government bond account holders already own bonds in tokenized form. This shows that interest in digital assets is rapidly increasing.
What is asset tokenization?
Asset tokenization is the process of converting real-world assets such as bonds, real estate, and stocks into digital tokens on a blockchain. These tokens are easy to trade, track, and access. Additionally, tokenization increases the liquidity of assets, allowing investors to buy and sell them quickly.
Tokenized government bonds are already becoming popular in the Philippines. About 50% of bondholders hold bonds, which is higher than in many other countries in the region. Therefore, the introduction of tokenized assets is already important.
Why the Philippines is ready
Many factors make the Philippines suitable for tokenization. First, many people are young and tech-savvy. They already use mobile banking and e-wallets, making it easier for them to adopt digital finance.
Second, the government supports fintech innovation. Regulatory sandboxes and clear rules allow companies to safely test new ideas while protecting investors. Additionally, banks and fintech companies are considering tokenized bonds, real estate, and other assets. This public-private partnership has the potential to accelerate adoption and create substantial economic value.
$60 billion potential
The white paper estimates that tokenized assets could reach $60 billion by 2030. This includes tokenized bonds, real estate, and corporate investments.
Tokenization gives small investors access to assets they could not buy before. Additionally, it reduces costs and speeds up transactions. Blockchain also provides transparency, securely recording all transactions and reducing the risk of fraud. Therefore, tokenization benefits both investors and the market as a whole.
Challenges and the way forward
Despite its potential, tokenization faces several challenges. Regulators need to continue to set clear rules, investors need to understand the risks, and companies need to ensure strong cybersecurity.
Nevertheless, with strong implementation, supportive policies, and advanced technology, the Philippines is poised to lead in Asia. By 2030, asset tokenization could change the way Filipinos invest, attracting more capital and boosting economic growth. Overall, it shows that digital finance is becoming an increasingly important part of the country’s financial future.