Tokenization was one of the topics of discussion at the Consensus 2023 event, where a group of panelists said that tokenizing real-world assets was the next phase of crypto advancement. Tokenization is the process of creating a digital token that represents a real-world asset that can be traded on a blockchain.
It allows for the creation of new cryptocurrency tokens that represent specific assets or utilities and leverages the security and immutability of the blockchain to ensure the authenticity and integrity of the assets. This will deliver value around the clock, where users can easily and without censorship trade real assets in the form of digital tokens.
Carlos Domingo, the CEO of Securitize, who was one of the panelists, said that the adoption of tokenization will follow the route of how big companies initially rejected cloud computing but are now using it for efficiency. For the tokenization of real-world assets, there will be a progression from hosting them on a private blockchain to permissioned chains and then to public blockchains. “Firms are getting more comfortable with it,” Domingo said.
Tokenization will change how we transfer value
Speaking about the impact of tokenization, Christine Moy, Head of Digital Assets at Apollo Global Management, noted that tokenization transforms “how value is transferred”. This is possible at this stage because the technology needed to make it happen has been created.
For Avalanche Labs Director of Business Development, Morgan Krupetsky, while the concept of tokenization has been around for years, it has progressively improved, and several institutions are ready to embrace it.
She noted that one of the factors that will drive tokenization is the ever-rising interest rates in the economy, which have reduced the price of tokens while creating massive demand for a new way of doing things.
Again, Carlos noted that if the idea of tokenization is accepted by the market, then it will be the next phase of crypto.
Read also;
Expect a US crypto policy in two months – US Rep
Bermuda loves crypto but has prisons – Premier warns
