The trend that isn’t… trending? Actually yes: tokenization will be a revolution, but mainly for…
On to the next one trend that everyone is talking about in the crypto world, it is time to shed some light. Yes, let’s talk about the tokenizationwhich has already brought tokens like $ONDO very high and which is of particular interest Ethereum And Avalancheat least as far as we have seen so far, with a strong preponderance of the former.
It is an issue that is affecting all the main fund managers worldwide – and given the names involved (think of BlackRock) – it has also generated great attention among crypto enthusiasts.
However, there are at least 5 issues that we think are important and that should help you really understand what’s at stake. In 5 points We will therefore summarize everything that is important to know about the RWA trend – or as we prefer to call it, the tokenization. Also come and talk about it on ours Telegram channelthe fastest growing community channel in Italy.
Tokenization: 5 things they DIDN’T tell you
Are we skeptical about tokenization? Absolutely not. We were the first in Italy to talk about it and among the first worldwide. There blockchain The top levels of finance also like it a lot. Franklin Templeton has been at it for a while, BlackRock has already launched its first fund, and there are many more generally operating in the sector. And they would like to operate more and more.
It’s a question of infrastructure
It is mainly a question of market infrastructure. Today the main financial markets operate on old generation infrastructures, they have times of settlement (i.e. the actual closing of the agreement) are very long and they are often unable to communicate.
Operating on Ethereum or on other chains, you can instead rely on public, open infrastructures in which any operator can participate.
Titles work… the same way
Instead of having the who has what, i.e. the list of holders of the title or share, there is a token, on networks that support this type of asset. What changes for the title? Absolutely nothing: the form changes, but the substance, which is the most important thing at least for Criptocurrency.it, remains unchanged.
What are we talking about when we refer to substance? We are talking about the possibility of access to certain markets by everyone, about freedom of exchange and everything that is at the heart of the crypto philosophy. In this sense little has been done, very little, and from the next points it will be clear why this is the case.
No, they won’t be free like DeFi
Any type of asset we could put onchain is tied to specific regulations, national or common market laws. If you buy a house, tokenizing it will not save you the notary and the red tape. If a stock or fund from a large manager is limited to professional investors, it will continue to be so as well onchain.
And let’s forget that managers of a certain reputation, like BlackRock, bypass certain rules for the sake of following them the crypto philosophy. Compliance is therefore always at the forefront, even when it comes to assets onchain.
It is worth remembering that you will not be able to think, at least until the laws change, of having purely onchain exchanges without a third party: whether it is BlackRock which includes the list of wallets that can hold an asset, who how third party attributes ownership to the token itself. There is still a lot of world offchain.
Is this good news for the networks favored by large operators?
Yes. Let’s take the example than what the CIO of BlackRock’s ETF division said. He stated that Ethereum and more generally public onchain networks are preferable (to private solutions from banks like JPMorgan). BlackRock also has to sell, soon, the Ethereum ETF launching in Julyand will combine the two actions to kill the classic two birds with one stone.
If this were to become the real new trend, the most used networks would gain a lot in terms of interest and also purchases.
Travel companion is different from friend
If it is true that many once unsuspected managers are now taking an interest in cryptoit is equally true that you can be traveling companions without becoming friends.
Not that BlackRock or Franklin Templeton did anything about it. It is actually the basis of many products DeFi puri is different: allowing everyone to access instruments that in centralized markets are the exclusive prerogative of professional investors, in a decentralized way. Or rather, as decentralized as possible. This is not the case with tokenization: a change of dress that will deceive the most idiotic, but not the readers of Cryptocurrency.it.
