Crypto: Why Asset Tokenization is the Future


Traditional finance companies are taking advantage of the efficiency gain from asset tokenization.

This provides a means for active fractioned become programmable and liquids, as said Tuesday the CEO of  Chintai ,  David Packham,  in the virtual event  Benzinga Crypto Festival.


Tokenization for retailers vs. Institutional investors

When asked about the opportunities that asset tokenization presents for the retail investor vis-à-vis institutional investors,  Scott Melker , host of ‘The Wolf Of All Streets Podcast’ noted that “digitization is inevitable.”

“We see it through the middle. Now we see it with money. So we can see a bit of retail excitement starting in the NFT space  , but that only scratches the surface of the actual use cases, which go very deep into these types of digital assets, ”he said.

“Tokenization is by far a better way of doing things. It is a superior option than the one we currently have. We’re excited about the Ape, NFT, and Cartoon operations, but what about  real mortgages ? Tokenization is the future of most transactions. “

Philip Gradwell , chief economist at  Chainalysis, Inc , noted that “anyone can create and distribute whatever is in their industry. Anyone can create a financial asset. When you understand those dynamics, you get a great deal of innovation. We will see it in finances and money. Tokenization will occur in more exotic areas. “

New opportunities for traditional finance

Packham claimed that he believed NFTs were going to catch on.

“What surprises me is that the   traditional financial sector has taken an interest in fractional tokenization of real estate. Real estate is different. It is adding liquidity to the previously unliquidated asset class. “

Paul Caldwell , CEO of  Original Data Corp. , said that “the easiest fruits to take in traditional financial sectors are entertainment and  gaming . What kind of NFT do you create in this sector? It is important to understand, ‘how do you create a market for NFT over a period of time?’ “

Regulations for NFTs

“It will be a journey. The key points that regulators understand about cryptocurrencies is that they can regulate their establishments even if they cannot regulate the asset itself. This is why  exchanges  have KYC verifications. As we enter the world of NFTs, it will become increasingly difficult to regulate establishments. The organisms do not know what the sense of regulation should be. And that’s an ongoing discussion, ”Gradwell stated.

“There will be a volunteer effort coming from everywhere, but it is a very different game. The key point of regulation should be, if something goes wrong, how can it be rectified? ”Added Philip.

Chintai is building a worldwide regulatory compliance list, according to Packham.

“Compliance is an extremely advanced, fragmented and reactive community of examinations, balances and processes around the international monetary device,” as he pointed out.

“At Chintai, we solve those problems by transferring all business lifecycles to belongings.”

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