Tokenized equities will be a great benefit to the traditional markets, but may not be a Boon for the crypto industry predicted by others, says Rob Hadick, generally partner in the crypto venture firm Dragonfly.
“There is no doubt that it has a huge impact on Trade,” Hadick told cointelegraph at a conference 2049 in Singapore. “They want 24/7 trading, it’s better for their economy.”
However, he saw vague benefits for major crypto players in the real-world asset tokenization space, such as Ethereum.
The US Securities and Exchange Commission is reported developing A plan to allow blockchain versions of stocks to trade with crypto exchanges after many financial institutions pushed the regulator to allow the always open market.
Hadick said institutions “do not want to directly in these general chains,” giving Robinhood and stripe as examples of those who build their own blockchains.
“They don’t want to share the economy. They don’t want to share block space with Memecoins. They want to control things like privacy (and) who the validator has set, they want to control what is happening in their implementation environment.”
Institutions want their own control
Hadick said that if tokenized stocks use Layer-2 networksThis creates a “leak” because the value may not return to the Ethereum or the wider crypto ecosystem as much as expected.
If financial institutions build their own layer-1 blockchains, it would be a “little clearer” how the value flows into the remaining crypto ecosystems.
Many private permissions that blockchain have launched and failed in recent years, but hybrid chains, where the company has its own control but the choice to be permission, is where most institutions are in today, he said.
“They want their own L1 and L2S, but they want an atmosphere they control.”
Hadick’s perspective is contrary to the current narrative led by the likes of Fundstrat’s Tom LeeCEO of Vaneck Jan van eckand founder of Consensys Joseph Lubinwho thinks of Wall Street and Tradfi Moving onchain will have a huge benefit for Ethereum, which will help to lift the broader market.
SEC has pushed tokenized equities
A number of funds and exchanges, such as Vaneck and New York Stock Exchange (NYSE), recently met with the SEC to discuss tokenized equities.
In September, the Nasdaq Filed For a change in the rule to allow it to list and trade tokenized stocks.
Tokenized stocks are a nascent sector, which represents a small portion of the total onchain value of real-world assets, with only $ 735 million, or 2.3% of market sharing, According to To RWA.XYZ.
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Additional Report by Andrew Fenton.
