Tokenization will not take off without reality

The tokenization, unfortunately, became buzzdord, it does not prove its value. Investors remain unconvinced, and inconsistent regulations are pricking progress. Too often, assets are tokenized only because of this, without giving any improvements to accessibility, efficiency or liquidity. The tokenized portfolio on the chain soundly sexy and exciting for cryptic domestic investors, but it is a small niche markets. For the tokenization that they are really fleeing, the purchase of institutional and retail investors who want to modernize traditional assets and do not only create digital twins inefficient traditional products.

So far, the focus of the industry was respected and replicating property in the real world, but the main investors are still lacking convincing reasons for engagement. In spite of Institutional interest From companies such as Blackrock, adoption remains slow because the industry failed to deal with basic investments. The tokenized property is still difficult to trade, lack liquidity and exist in a fragmented regulatory landscape. This complication and suspicion of causing traditional investors with a large portfolio that they are not even worried about the world, some of which see Bitcoin (Btc) like Ponzi Scheme. Institutional investors must be involved in making some decisions about investment in cryptocurrency, but it will take time. Giving Proper education And the tools are critical when understanding how to move reliably in tanked property.

Check Chere Realty

Tokenization should focus on the spread of practical functionality for investors. Boston Consulting Group, in a recent white paper, Projects In more scenarios for the property tokenization to reach the trils of the dollar amulet (AUM) by 2030. Years. The real value means greater liquidity, better assessment options, increased transparency and trust in a system that can use these funds wisely. Currently, when you keep these assets with major institutions and guards, your options are extremely limited. In some cases, assets can be used as security, but the process remains bent and restrictive. For example, we are not talking about crypto to the native investors who put $ 28.6 trillion Cabinet valuable property. More, pension funds managers and cannot imagine using the Metamasbos wallet to keep the tokens with realistic funds and uses them in a smart contract to ensure decentralized finance.

Tokenization is a unique opportunity to transform traditional finances. Converting static assets in smart contracts, these tokens can automate a lot of financial processes and create new cases of use that are not available in traditional finances. However, we cannot rely on the old legacy of financial infrastructure: traditional guardians, fund managers and administrators. According to the World Economic Forum, the tokenization could unlock The motion of collateral that was never possible. The process remains expensive and long-lasting, and even institutional or retail investors will be involved. It is time to turn it into reality and commit to deliver the actual, tangible value to attract the long-term adoption.

To make sense

Regulatory clarity remains inconsistent and created a fragmented market. Jurisdictions like Mounting authority of Hong Kong and Abu Dhabi Global Market They take proactive steps, but the fragmented global landscape gives respect for a great challenge. For example, if I want to tell property in ADGM and provide compatibility with tokenized funds below HKM, or I want to trade decentralized exchange, I need to comply with ADGM regulations, where I am based and HKMA regulations. Now, imagine that there are not only two jurisdictions, but 150. When each has its own standards and rules, compliance is almost impossible, and the dream of a seamless financial system is dead in water. Large financial institutions and service providers are already working to know how they can harmonize digital property such as tokenization with the regulatory framework.

We need to encourage a global regulatory framework for digital assets, not the framework of regional legislation. Without regulatory settlement, tokenized assets risk being limited to niche markets, not to achieve true global adoption.

In order to achieve financial democratization, we need usefulness

Tokenization should not only deal with the digitization of old financial models; It should create new ways to use property, to trade more efficiently and / or borrowed against. Only tokenization is not enough. Property must be made smarter and deliver the tangible value Global investors, regulators and service providers. Currently, many tokenized investment opportunities remain limited to qualified investors, which enhances existing financial barriers, not to break them. True democratization means opening access to retail investors, not just tokenizing assets for institutions.

This industry is still in the early stages, which means that there is enough time for its future to shaped in the right way. If regulators, jurisdictions and innovators can align on the appropriate box, the RVA tokenization sector can see Massive growth until 2030. Years. The future tokenization depends on the transition beyond the hype.

Rob Daikin

Rob Daikin The co-founder realizes, a leading tokenization platform for actual property. It is at the head of growth, accessibility and visibility and visibility in the development of the digital economy. With over 15 years of experience in the fund administration and huge knowledge of cryptic and decentralized finances, rob the professional bridges of traditional finance with superb blockchain solutions. He held older positions at the IC-EC and the state state alternative investment solution. In addition, Rob is also a co-founder of Nakam Laboratory, Web3 Venturi Fund and innovation hubs focused on decentralized technologies.