Tokenization’s Next Phase Focuses on Utility and Compliance

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At a panel during the Consensus conference in Hong Kong, senior officials from Ondo and Securitize emphasized that the next stage of tokenization will prioritize technological utility and legal compliance over mere hype or reputation. Tokenization is the process of converting traditional assets into digital tokens to simplify ownership and trading. Both Ondo and Securitize play significant roles in this field; Securitize offers regulatory-compliant services for digital tokenization of financial assets, while Ondo provides advanced solutions for managing and trading digital assets. Despite growing market interest, sustainable growth in tokenization requires technology that is not only efficient and user-friendly but also fully adherent to local and international regulations. Tokenization can make investment processes more transparent and faster, enabling even small investors to participate in global financial markets. However, the sector faces complexities and legal challenges that must be addressed to maintain investor confidence and market stability. Experts believe that the future success of tokenization depends on its ability to solve real business problems within legal frameworks, thereby making financial services more inclusive and accessible.

Source: coindesk