Tokenization Will Revolutionize Financial Markets, Says Paul Atkins
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TLDR Tokenization can enhance financial market transparency and create more predictable systems, according to Paul Atkins. Tokenization represents digital ownership of assets, moving traditional securities onto blockchain for efficient management. Real-time on-chain clearance and settlement could eliminate traditional delays, reducing the gap between transactions and settlements. The SEC, under Atkins’ leadership, aims to provide clarity and regulatory support for tokenization and blockchain technologies. Tokenization could reshape financial services by enabling safer and faster transactions. In a Fox News interview, Paul Atkins, former SEC commissioner, outlined how tokenization could reshape financial markets. He emphasized that tokenization would improve transparency and create more predictable systems in the financial world. According to Atkins, the SEC is actively working to provide clarity for market participants and embrace technological innovation. Tokenization, he explained, is a promising tool for enhancing efficiency in financial services. The Potential of Tokenization for Financial Markets Paul Atkins highlighted that tokenization, at its core, represents a digital version of an underlying asset. “A token is essentially a smart contract, a digital representation of ownership,” he stated during the interview. In the case of securities, which are already traded electronically, tokenization brings a new way to manage these assets on a blockchain. He pointed out that whether a security is in paper form or stored digitally, tokenization could simplify the entire process by moving it onto the blockchain. This shift could allow transactions to be cleared and settled on-chain in real time, reducing the traditional delay. Atkins also noted that moving towards a T-zero (immediate) settlement model would de-risk the financial services sector. “The time between transaction and settlement has already reduced from five days to one, and we aim to bring it down even further,” he explained. This faster and more secure process could have a significant impact on global financial…
Filed under: News - @ February 11, 2026 1:27 am