Is Asset Tokenization Still a “Hot Trend” in Fintech?
It’s no secret that security tokens have exploded in visibility this past year. However, do they have staying power?
The reality of trading commodities have existed for a long time now, but the token function could change how we understand liquidity. Today, people want greater returns, more flexibility, transparency, and everything faster. Most of all, they want these perks with as few intermediaries as possible.
This is what the crypto-space promised. Moreover, this is what security tokens promise to bring to all of traditional finance. According to Illia Obraztov, VP of Technology at Smartlands, security tokens have staying power. However, it all depends on if certain conditions are met. These conditions are:
“broader interoperability standards, better enterprise-grade blockchain integration, recentralisation to accommodate institutions, improved relationship between greater security and cost efficiency…”
Some industries, like real estate, have the most to gain from tokenization. That’s where security tokens will first be felt.
So, to say that security tokens are a mere trend ignores the longstanding building that has to happen before the concept catches on. As of now, we’re entering the end of a relatively obscure hype cycle — it may seem like a big deal to crypto-insiders, but to the rest of the public, security tokens have yet to impact the actual economy. And when they finally do, it will be felt on a grand scale.
Do you believe that security tokens are here to stay? Let us know your thoughts in the comments down below.
Image courtesy of Daily Fintech.