Liv, the UAE's first digital bank launched by Emirates NBD, has signed a Memorandum of Understanding (MoU) with Ctrl Alt, a provider of alternative asset solutions for businesses. This collaboration aims to explore the potential of tokenization for real-world assets. Tokenization is a process that transforms ownership rights into digital tokens, creating a tradable representation of the underlying asset on a blockchain ledger.
This move by Liv reflects a growing interest in the potential of blockchain technology to revolutionize the financial sector. By tokenizing real-world assets, Liv and Ctrl Alt envision increased accessibility and fractional ownership for investors. Traditionally, investing in certain assets, like real estate or private equity, requires a significant amount of capital. Tokenization could allow investors to purchase smaller fractions of these assets, opening doors to a broader range of investment opportunities.
The MoU comes amidst a period of rapid growth in the digital asset market. Industry analysts predict that the tokenized asset market will reach a staggering $16. 1 trillion by 2030. Liv, recognizing this potential, is strategically positioning itself to be at the forefront of this innovation.
"We are delighted to co-partner with a leading infrastructure provider such as Ctrl Alt for this initiative, " said Marwan Hadi, Group Head of Retail Banking and Wealth Management at Emirates NBD. "Liv has always remained at the forefront of digital innovation, and this collaboration aligns perfectly with our vision to be the most innovative bank for our customers. "
Ctrl Alt's expertise in alternative asset solutions is expected to be instrumental in facilitating Liv's exploration of tokenization. The company's experience in structuring and managing alternative investments will be valuable in navigating the complexities of tokenizing real-world assets.
This partnership between Liv and Ctrl Alt signifies a significant development in the UAE's financial landscape. By leveraging blockchain technology, Liv is paving the way for a more inclusive and accessible investment environment for its customers. The collaboration has the potential to unlock new investment opportunities and reshape the way we think about asset ownership.