‘Contrary to popular belief,’ regulation is not slow tokenization – CEO of Prometheum
The market for tokenized real-world assets (RWAs) grows during the day, but contrary to belief, the greatest obstacle to greater adoption is not regulation, but a lack of dedicated secondary market for the purchase and sale of tokenized securities, according to Prometheum and co-CEO founder Aaron Kaplan.
In an interview with Cointelegraph, Kaplan drew attention Ark invest CEO CEO Cathie Wood’s Recent appearance at the Digital Asset Summit in New York, where he said a lack of clarity of regulation is preventing his company from causing its funds.
“Contrary to popular beliefs, however, the obstruction is not unclear regulation,” said Kaplan, who noted that the framework of the US Securities and Exchange Commission (ATS) provides a regulated path for the release of blockchain-citizen funds that offer efficiency in traditional releases.
“The real bottleneck lies in the limited market infrastructure for the delivery of pokeenized security trade to a wide investor base,” he said.
Excluding stablecoins, the amount of Tokenized Rwas has increased by almost 8% to $ 19.5 billion in the last 30 days, according to industry data. The US Treasury’s private credit and debt remains two largest cases of use.
The value of the tokenized RWAs has grown rapidly in the last year. Source: Rwa.xyz
“These possessions are currently sitting in a number of blockchains, but there is still no fully public second market where investors and retail investors can buy, sell, and exchange them, as they do with traditional NASDAQ security security or through a brokerage account such as fidelity,” said Kaplan, who has identified two general strategies for this formal plat for it.
The first is the development of tokenized security markets using decentralized finance frameworks (DEFI), similar to what is Ondo Finance, Etherna Labs and Securitize is doing.
Related: ETHENA LABS, SECURITIZE LAUNCH BLOCKCHAIN FOR DEFI AND TOkenized Assets
The second approach involves the integration of tokenization protocols into existing broker platforms operating under SEC -registered entities and subject to federal security laws.
“Legacy and Fintech platforms are accustomed to facilitating cryptocurrency trading, so you expect them to expand their offerings to include tokenized securities,” Kaplan said.
While many in the late camps do not work digital, they will not “not share the market without a fight,” Kaplan said. “Many are already investing in their own tokenization initiatives, or collaboration with fintech and crypto firms, to remain competitive.”
“What’s at stake is the next wave of users riding in the digital asset space (…) The question is, will the Digital Asset Space industry come in, or will crypto platforms enter the next Gen markets to buy and sell digital security?”
As a digital trading asset and custody firm, Prometheum tries To bridge the infrastructure gap by developing a full service in the digital assets securities. The company says that the security exchanged securitys have reduced fees, faster time of negotiation and increased efficiency.
https://www.youtube.com/watch?v=Tyo93t72ms
Related: CME Group has tap on Google Cloud for Pilot Asset Tokenization Program
Investors want the ‘digital native’ version of assets they always know
Probably the biggest demand driver for Tokenized possessions Among the traditional investors they want to access “digital folk versions of all possessions, in addition to crypto tokens, through a single ecosystem that they are comfortable using (…) to meet a set of financial goals,” Kaplan said.
An area where tokenization appears to be getting traction in real estate. As reported by Cointelegraph recently, luxury and Commercial possessions Ay being tokenized Throughout North America and secondary markets have been established to enable the trade of tokenized shares.
A 2024 report of the Boston Consulting Group (BCG) called tokenization a “change-changing blockchain use of the case with financial services” due to scalability and close-instant transactions.
According to BCG Managing Director and Senior Partner Sean Park, tokenization can boost the annual return of investors by approximately $ 100 billion while increasing the revenue of the flow of financial institutions.
Tokenized RWAs as an investor class of possession reached an “inflection point” in 2023. Source: Boston Consulting Group
The potential of tokenization is even that -flag of World Economic Forum In a recent article published by Digital Asset co-founder and CEO Yuvan Rooz.
In the article, Rooz showed that approximately 10% of the $ 230 trillion global security market should be used as collateral.
“The tokenization, which improves the mobility of collateral and capital efficiency, can unlock this unnoticed capital and optimize the intraday so that funds can be accessed and transferred within the same day of trading to address payment obligations and regulations,” Rooz said.
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