Industry professionals discussed how tokenization enables previously unheard-of solutions at a discussion at the Swiss Web3 Fest, which was facilitated by Cointelegraph editor-in-chief Kristina Lucrezia Corner.

According to the Boston Consulting Group, the tokenization of physical assets has the potential to grow into a $16 trillion sector in the near future. Its influence, however, extends far beyond monetary sums and can assist individuals in poor nations in coming up with innovative solutions for pressing issues.

A panel at the Swiss Web3 Fest led by Kristina Lucrezia Cornèr, editor-in-chief of Cointelegraph, featured speakers from the industry who discussed how tokenization can be used with real-world assets and how it opens up previously unimaginable possibilities.

“Our farmers in Kenya receive their payouts days after the harvesting season ends. If they have less yield than expected, then they receive a payout immediately. In the traditional insurance space, they need to wait six months. And that can mean the end of a family’s business," explained Christoph Mussenbrock from decentralized insurance protocol Etherisc about tokenization solutions for agricultural production.

Mussenbrock claims that traditional insurance providers are requesting on-chain solutions more frequently. This is taking place right now, as we speak. That's a significant shift. It appears that conventional insurance providers are participating in this in some way.

According to Stephan Rind of BrickMark Group, asset tokenization can help reduce the wealth gap by providing access to financial items that are currently out of reach for the majority of people.

“Number one in financial inclusion, obviously you can have a number of participants that can participate in a financial instrument, and you have the democratization of capital [...] everything from real estate to animals, to all the things that you can have in traditional finance, that could actually be tokenized and represented in a digital financial instrument,“ Rind commented.

Carlos Mazzi, from Finka, shared his experience of tokenizing La Pradera, a cattle ranch in Bolivia with 3,000 hectares of grassland and over 3,500 cows. “We tokenize the value creation of what we call from grass to cash. It’s the tokenization of value creation. The conversion of grass into protein and into cash through a great nature-given machine, which is a cow. We were early pioneers, and this was very challenging [...] it represented a lot of financial engineering, legal framework, etc. to create a revenue token. So it has been fantastic [...] The only thing that has not developed the way we anticipated is the market adoption, and it’s a systemic issue that, we hope, will be corrected eventually.“

Finka resident Carlos Mazzi talked about his experience tokenizing La Pradera, a cattle ranch in Bolivia that has approximately 3,500 cows and 3,000 hectares of grassland. We turn the process of creating value from "grass to cash" into a token. It's the production of value through tokenization. the process by which grass is transformed into protein and money using a wonderful machine provided by nature—a cow. Being early adopters, this was quite difficult for us because creating a revenue token required a lot of financial engineering and legal structure, among other things. Thus, it's been amazing [...] The market adoption is the one thing that has not progressed as planned; this is a structural problem that we believe will be resolved in due course.

According to Rind, central bank digital currencies will surpass the acceptance issue. He predicted that "it will create billions of people who have a wallet in the world" and that "regulatory measures will also unlock more capital for asset tokenization."

Jose Fernandez from Tokengate continued, "We think that most people will be interacting with tokens on a daily basis in ten years, whether they know it or not."