Tokenization News Roundup: Pendulum Swings Toward Doubters
4In recent weeks, the buzz around the emerging tool of tokenizing real-world assets has been on how it will grow to achieve the $16 trillion-by-2030 potential that the Boston Consulting Group predicted last year. Inevitably, criticism intrudes, and this week there is sober opinion, caution and skepticism in the zeitgeist.
Here's this week's roundup of the latest stories and reports from CoinDesk and the industry to keep you up to date on the progress of the tokenized real-world assets revolution.
How Crypto Tokenization Can Go Wrong (and How to Make It Right) (CoinDesk).
Real-world assets could become a $5 trillion dollar industry, some analysts project. But, without greater credit availability, certain changes tokenization won't be a meaningful evolution in finance.
Takeaway: Ralf Kubli, board member of the Casper Association, cuts through the splashy trillion-dollar projections for the growth of real-world asset tokenization to warn that the emerging industry needs to focus on standardization to make our financial markets more efficient.
“Let's avoid the path where financial institutions merely upload financial statements to the blockchain and rethink the quality and types of information financial asset tokenization can provide, which will inevitably rewrite the rules on credit.
Otherwise tokenization will only provide the level of transparency and trust as in existing markets — which haven't truly improved since the informational deficits that drove the housing market boom and bust in the late 2000s. Do we really want to recreate the conditions that led to the Great Financial Crisis…?”
Can Swarm Move Tokenization Beyond Hype Into Mainstream DeFi? (BeInCrypto).
The tokenization of real-world assets has offered promise and frustration in equal measure, but one blockchain platform claims regulation is the key to success.
Takeaway: An interview with the founders of Swarm, a fully-regulated decentralized platform that tokenizes real-world assets for use in DeFi protocols, supports similar ideas to those in the CoinDesk op ed by Kubli. Standardization and regulation are critical at this juncture for successful tokenization that will ultimately lead to a healthier future for crypto generally.
‘Swarm’s bosses argue the right mix of regulation and decentralization is key to the survival of the crypto sector after the failure of FTX. They argue, ‘The standards for bringing assets on-chain need to be rigorous, and the onus is on those in the tokenization space to get this right. Failing to do so will result in a loss of confidence in the blockchain sector.’”
Maple Finance's Tokenized Treasuries Available to U.S. Investors After Securities Exemption (CoinDesk).
The platform's cash management facility has attracted $22 million of deposits since it opened in April.
Takeaway: Blockchain-based credit marketplace Maple Finance has expanded to the U.S. market the opportunity for investors to access liquidity.
“Digital asset firms, crypto investment funds and protocol treasuries often hold substantial amount of cash in stablecoins. Tokenized Treasuries offer them a shield from inflation and a way to earn some yield.” That yield presently is around 4% to 5%, which is why Maple has attracted $22 million of deposits in the first three months that it was available to non-U.S. investors.
What is the tokenization of real-world assets?
Meanwhile, expansion and growth in the RWA space...
https://www.coindesk.com/consensus-magazine/2023/08/10/tokenization-news-roundup-pendulum-swings-toward-doubters/
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***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST ENTERTAINMENT!
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