Cryptoverse: 'It's a knife fight' as traders get tokenized
As crypto prices see-saw ahead of their next swerve, the market for "tokenization" — issuing blockchain-based digital tokens that represent assets from bonds to stocks and real estate — may finally be reaching a critical mass.
Big finance firms like London Stock Exchange Group, WisdomTree and Mirae Asset Securities have either invested in token trading and investment platforms over the past year, or are in talks to develop them. Others like Franklin Templeton, UBS Asset Management and ABN Amro have launched tokenized versions of assets such as money market funds and green bonds.
More than a third of institutional investors in the U.S. and almost two-thirds of high-net-worth investors plan to invest in tokenized assets this year or next, according to two surveys of more than 300 players in total conducted by EY-Parthenon in May.
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View Details» It's potential for savings on transaction costs that have big investment players circling, according to Colin Butler, global head of institutional capital at blockchain firm Polygon Labs.
«It's a knife fight right now for market share and profits, so these cost-reduction ideas are very powerful,» he said, adding that institutions had spend years researching tokenization and were now more comfortable launching projects.
Backers say tokenization offers traditional finance more transparent trading, increased liquidity, plus reduced costs and settlement times, by automating
