Singapore – SEC Commissioner, Hester Peirce, said on Tuesday that the regulator was open to engage with industry participants on tokenization products, while highlighting the complexity of the way to tokenized assets interact with their traditional counterparts.
“We are ready to work with people who want tokensize, we urge them to come and talk to us,” Peirce told Digital Assets Summit in Singapore.
A tokenized warranty is a digital representation based on ownership blockchain or rights in an underlying asset, such as shares or bonds. This means that the same security can exist both in traditional paper certificates and electronic certificates, as well as in blockchain tokens.
The key problem that Peirce stressed is to understand how these different forms of the same security relate and interact with each other.
“Some of the questions are how tokenized security interacts with other security iterations and other forms of this security,” said Peirce, while calling for a nuanced approach to regulate tokenization, saying, saying,
“Depending on how things are token, it could be one of the many different things,” she said.
Tokenization is distinguished as one of the rare cryptocurrency sub-sectors, alongside Stablecoins, with important real world applications. Financial institutions around the world adopt tokenization to improve market liquidity and operational efficiency, resulting in a transformer change in the way assets are issued, exchanged and managed in the global financial system.
On Tuesday, the total chain tokek market was estimated at $ 31 billion, according to Rwa.xyzWith $ 714 million from that of tokenized shares.
The McKinsey analysis indicates that the market capitalization of all tokenized assets could reach approximately 2 billions of dollars by 2030.
