Tokenization: The New Rails of Finance Are Coming
Tokenization is real, and any asset that can be tokenized eventually will be.
Tokenization is no longer just a buzzword—it’s ready to become the backbone of modern finance.
This insightful piece from OMFIF highlights how tokenization is transforming the financial landscape, with industry leaders and the former head of the Bank of England championing its potential. Are you ready for the disruption?
This article is also a great follow-up to my three-part series on the topic.
These industry insiders are painting a clear picture that tokenization, with its potential to streamline regulated asset transfer significantly, isn’t a pipe dream but the future of financial markets.
This is not a repeat performance of 2017 when blockchain aficionados boldly proclaimed that everything would be “on-chain.”
Since the peak of blockchain hype in 2017, financial institutions have had time to test the technology, work out the kinks, and finally, like what they see.
Tokenization has even breached the walls of the staid realm of central banks. No less than the BIS, an industry insider, is adopting it like a religion with its view toward a global “finternet” A world where assets are “everything, everywhere, all at once.”
This time is different. Instead of crypto and blockchain fans touting tokenization’s potential, major banks and securities exchanges are pushing for it, and they are not just serious—they are deadly serious.
The future of finance is tokenized!
My top 3 favorite chapters:
🔹 Shaping the future of payments, pg 13
Idemia’s Jerome Ajdenbaum and Hugues Marie focus on inclusive finance and offline transfers, showing us just how important this technology is not just for financial services, but all of humanity.
🔹 Will growth in regional payment systems spur de-dollarization?, pg 24
A solid read that shows how systems like mBridge could have an impact on the dollar. While OMFIF isn’t predicting disaster for the dollar, it shows how with political will, the technology is now up to the task. I have long predicted an Asia CBDC trade zone.
🔹 The next generation of capital markets, pg26
This is the end goal of the BIS’s “finternet," the ability to transfer assets across interoperable systems to maximize efficiency and liquidity. It won’t come quickly, but we will watch market by market make the change.
This is a great read that has something for everyone.
Let me know your favorite chapters!
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