Tokenization is Already Helping the World’s Vulnerable. Here’s How
The post Tokenization is Already Helping the World’s Vulnerable. Here’s How appeared on BitcoinEthereumNews.com.
The tokenization of real-world assets has captured the imagination of financial institutions worldwide—delivering faster payments at lower cost, complemented by greater levels of automation. Stablecoins, digital assets that can be redeemed for fiat currencies like the U.S. dollar at a 1:1 ratio, now have a total market capitalization above $220 billion as Washington spearheads efforts to introduce clearer regulations. Image: Stellar Meanwhile, demand for tokenized U.S. Treasuries, bonds and cash equivalents have proven insatiable, surging beyond $3.6 billion at last count. Firms like global asset manager WisdomTree are already offering tokenized securities and other financial services to the tune of $100 billion in assets under management, while BlackRock’s Larry Fink recently argued that tokenization will usher in “the next generation for markets,” with Wall Street stocks digitally represented on the blockchain. Image: Stellar But, says the Stellar Development Foundation, tokenization can also make the global financial system more accessible to everyday consumers—including some of the world’s most vulnerable citizens. Tokenization in action According to the SDF, smart contract blockchain Stellar is already being used to help make the world a better place. The United Nations High Commissioner for Refugees was the first to pilot the award-winning Stellar Aid Assist platform, which allows much-needed financial support to reach those in need “quickly, efficiently, and securely.” All of this is complemented by full traceability and accountability, giving governments and citizens reassurance that the funds they donate are spent appropriately. Stellar Aid Assist has also been used on the ground in Ukraine, with the UNHCR helping families affected by the conflict to pay for rent, food, medical care and heating during the cold winter months. According to SDF, more than $4.2 million has already been dispersed to over 2,500 households in the country. “Aid to refugees across the globe could be done faster…
Filed under: News - @ February 25, 2025 1:16 am