At the 2026 World Economic Forum held in Davos, leaders from traditional finance and the cryptocurrency sector engaged in in-depth discussions on the potential impacts of tokenization. Experts highlighted both the promising benefits and challenges of this emerging trend. Tokenization, which involves converting assets into digital tokens to facilitate easier and more transparent trading, promises to expand investment access, enhance financial inclusion, and improve transaction efficiency. This concept could revolutionize the traditional financial system by allowing investors to purchase fractional shares and diversify across various asset classes. However, participants also expressed concerns about barriers such as limited financial literacy and issues related to state regulation. While the possibility of full tokenization by 2028 was viewed with cautious optimism, it was acknowledged that digital settlement of most assets is becoming an inevitable reality. This shift is expected to bring transparency, speed, and reduced costs to financial services, provided there are improvements in government policies, regulatory frameworks, and consumer education. Tokenization could open new pathways in the global financial system, but it also requires careful oversight and protective measures to ensure financial stability and safeguard consumer rights. The forum emphasized the importance of adopting a serious and balanced approach during this phase of the financial revolution.
Source: binance
