Crypto and Global Financial System to Merge in 2024, Says Sergey Nazarov with 'Hundreds of Trillions'

Crypto and Global Financial System to Merge in 2024, Says Sergey Nazarov with ‘Hundreds of Trillions’

Sergey Nazarov, one of the creators of Chainlink (LINK), believes that this year could mark a significant merger between blockchain technology and the traditional global financial system.

During a speech at the Consensus 2024 conference, Nazarov revealed that the market for on-chain assets exceeds $100 trillion. He showcased a chart indicating that both the $2.7 trillion debt market and the $106 trillion stock market have the potential to transition to the blockchain. Additionally, the chart demonstrated how other assets like global real estate and derivatives can be tokenized.

Nazarov expressed his belief that eventually, all financial transactions will occur on-chain, and he predicts that 2024 will be the year when the global financial system begins shifting its settlement systems onto public blockchains.

He stated, “We’re now at another tipping point where the value seen in the trend of real-world asset digital asset tokenization, even on public chains, has surpassed decentralized finance (DeFi). And this doesn’t even include the value in private chains, banks’ chains, and other more private systems, so there’s even more value than that.”

Nazarov envisions a future where all the world’s value, including credits, derivatives, commodities, and more, is represented and composed on-chain into increasingly advanced financial products in an efficient and quick manner. He anticipates that what currently takes months will soon take minutes to seconds, as more assets become composable on-chain and create their own advantages through integration into advanced baskets of assets.

He emphasized that the industry is now at a tipping point, surpassing previous numbers, and major institutions are beginning to explore how to transfer their value onto the blockchain. Nazarov concludes, “I would say that this year is when our industry shifts in the new direction of public chains and the merging of the global financial system into a single industry, a single internet of contracts.”

The Daily Hodl is not responsible for any investment decisions made based on the opinions expressed in this article. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.

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