Tokenizing real-world assets: Start small, solve problems, drink milk
The post Tokenizing real-world assets: Start small, solve problems, drink milk appeared on BitcoinEthereumNews.com.
Tokenization is set to transform the digital economy in the coming years, provided global governments and regulators are willing to adapt to this revolution. At the London Blockchain Conference 2024, Dimitrios Psarrakis, co-founder of the ValueVerse digital finance strategy group, assembled a stellar group of panelists for a discussion labeled Navigating the Digital Horizon – Unveiling Government and Legal Frameworks and Real-World Applications of Digital Assets and Tokenization. The four experts offering their views were an impressive crew: financial cryptographer Ian Grigg of the Peer For Peer Foundation; Nikhil Vadgama, director at the DLT Science Foundation; David Almirol, Undersecretary, Dept. of Information and Communications Technology (DICT), Philippines; and Max Bernt, Managing Director, Europe of compliance/reporting solution TaxBit. Pasarrakis got the ball rolling by recounting his involvement in the space since 2016 and his search for ways to make the financial system smarter. He helped create the European Parliament’s blockchain resolution and said the top questions he received were about where the value of tokenization comes from, what the economic benefits/risks are, and how any of this might actually change business models. Vadgama said the “academic” answer is that tokenization offers “the removal of intermediaries, a direct connection, the use of smart contracts and immutability. These are all the same pieces of value the technology has that you’re bringing through tokenization of whatever you wish to tokenize.” Vadgama said, “The greatest penetration of tokenization to date is within the legacy financial sector,” calling the USDT (Tether) and USDC (Circle) stablecoins “the first examples of tokenization and the largest use cases.” The primary benefit of stablecoins is their ability to “seamlessly transfer value,” particularly when you compare them to the traditional financial services environment and its “incredible number of frictions.” Asked whether the sole benefit of tokenization was the removal of long-term…
Filed under: News - @ June 17, 2024 5:18 am