The S&P Dow Jones Indians (S&P DJI) are in discussions with major exchanges, custodians and defi protocols to licensed and list tokenized versions of its benchmarks, according to Stephanie Rowton, US equities firm director.
Rowton told Cointelegraph that the index provider is taking a “strategic approach” to ensure that S&P products are only launched on platforms that meet high standards for transparency, security and regulatory compliance.
“By promoting these kinds of relationships, we hope that we can work together to participate in a stable infrastructure that supports trading and accessing tokenized versions of our indexes, ultimately enhances the investor’s experience,” he said.
Pushing the blockchain comes as the institutional interest in tokenized financial products accelerates. S&P DJI entered the space earlier this year by licensing S&P 500 for An initiative of tokenization with centrifugethat uses official data to offer programmable index tracking funds by Smart contracts.
Rowton said the move has already developed “a revolt in curiosity and interaction” from both traditional finances (tradfi) and Decentralized Finance (DEFI) Participants in the market. “This interest reflects a broader market trend as investors are increasingly seeking innovative and great ways to interact with established financial products,” he added.
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Bridging Tradfi and Defi
Rowton said blockchain technology has a “potential change” in financial markets. “As demand for digital possessions increases, tokenization can play an important role in bridging the gap between traditional finances and decentralized finances,” Rowton said.
He added that S&P Dji’s Tokenization approach Aligned with the company’s mission to meet the needs of “a new generation of investors looking for innovative ways to engage in established benchmarks.”
The interest in tokenized index products is most powerful in digital indigenous investors, including crypto and blockchain participants, as well as institutions seeking to vary the portfolios. Regional, Europe, Asia and Latam are leading the charge.
Rowton also announced that the company is evaluating opportunities to pokenize other flagship benchmarks such as the Dow Jones Industrial Average and Thematic Index. “We recognize that different segments of investors can have different interests in specific indexes, and we aim to respond to market demand accordingly,” he said.
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2030 Vision for Tokenized Index
Rowton said the tokenized indexes would be “pivotal” in the global market by 2030, enhancing the access and liquidity of the cross-border market. Technology can lower the traditional investment barriers, while enabling new techniques that the DEFI features are like fractional ownership and automatic trading.
However, he again pushed the notion that tokenization threatens the traditional S&P DJI licensing business. Instead, he described it as “a complementary change” that expands commercial opportunities and opens an index investment in new audiences without compromising the integrity of benchmarks.
Rowton’s comments arrive while tokenized stocks continue to gain momentum, with market capitalization for blockchain -based financial products Hitting $ 370 million by the end of July.
Last week, opened Partnered with BNY Mellon To manage and preserve the assets behind his tokenized US Treasury product, Tbill, the “A” A “-rated tokenized Treasury Fund of the first Moody to use a global guardian.
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