Yesterday during a session at the SIBOS banking event, the benefits and opportunities of tokenization were explored. Deutsche Börse Clearstream’s Jens Hachmeister views the advantages in two ways. On the one hand, tokenization enables efficiencies and cost reduction. And it also provides new business opportunities.
The topic of tokenization enabling fractionalization and “democratizing” access to assets was discussed. “Just because you represented an asset as an ERC 20 token, you didn’t suddenly bring democracy into finance. That’s just good marketing,” said Yuval Rooz of Digital Asset.
He wasn’t criticizing fractionalization per se. Instead, he emphasized that technology and automating processes bring workflow operational efficiencies. And it is those cost savings that enable fractionalization.
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