Carlos Domingo, co-founder and CEO of Securitize, highlighted various aspects of tokenization, including its potential benefits and the industry’s past setbacks. Tokenization is the process of converting traditional assets into digital tokens, enabling easier buying, selling, and transfer on advanced platforms like blockchain. This innovation promises increased market transparency, reduced costs, and faster transactions. Securitize is a prominent company using blockchain technology to tokenize financial assets, creating new investment opportunities, especially for those with limited access to traditional financial systems. However, Domingo acknowledged that the industry has faced numerous failed experiments revealing security, regulatory, and technical challenges that still need resolution. Through tokenization, assets such as real estate and fine arts can be digitized, enhancing liquidity and offering investors fractional ownership opportunities. Yet, regulatory hurdles, security concerns, and market volatility pose significant risks to the sector. Domingo believes that successful tokenization requires government oversight, standardized frameworks, and technological innovation to restore investor confidence and stabilize the system. Additionally, educating users about the benefits and risks of this new technology remains a crucial component of its adoption.
Source: decrypt
