Connect with us

Digital Securities

Tokenization Headlines the World Economic Forum

mm

Published

 on

Tokenization Headlines the World Economic Forum

This week, the World Economic Forum in Davos showcased its innovative side with the From Token Assets to a Token Economy forum. Here, world influencers heard from several blockchain industry leaders. These experts explained in detail how the tokenization of real-world assets has the potential to revolutionize entire markets.

Speaking on the importance of security tokens, Neha Narula, director of the digital currency initiative at MIT explained why token ownership differs from a traditional bank held asset. Importantly, she also touched on how blockchain technology improves overall market integrity through transparency.

Streamline Business Systems – World Economic Forum

During the forum, Narula described how smart contracts can streamline many of the world’s industries and business systems. She explained that smart contracts are a “programmable layer” that enables developers to create “really interesting applications“. In closing, she spoke on the roadblocks to large scale adoption.

Specifically, Narula listed a lack of consumer protections as one of the main factors slowing adoption. Like many other market analysts, she believes that a strong regulatory framework needs to be in place in order for the market to thrive. Notably, Narula sees regulations such as companies providing full disclosure about their firm and exactly what their token represents as the first steps in the right direction.

From Token Assets to a Token Economy – World Economic Forum

Jeremy Allaire, chief executive officer of crypto fintech company Circle, also spoke on the nuances associated with the issuance of security tokens that are fully collateralized. Importantly, he discussed how tokenization can create entirely new markets. These new market opportunities, combined with a global reach, have the potential to spur a wave of new investments. In turn, those funds would provide a new stream of capital for global businesses and markets.

Jeremy Allaire via Twitter - World Economic Forum

Jeremy Allaire via Twitter – World Economic Forum

Allaire spoke on the many reasons why it was paramount to create capital markets that are both open and allow global participation. Primarily, these new global markets could be far more inclusive than the traditional ones. For example, Allaire described how the current market structure is too limited.  He pointed to the fact that there are only thousands of companies out of millions that participate as proof of the importance of a new approach.

World Economic Forum

The World Economic Forum is a multi-national organization that holds yearly meetings to discuss the most pressing issues facing the world. These events see attendance from some of the most powerful and influential people in the world. In this manner, the forum engages the world’s top leaders in regards to the global, regional and industry agendas at hand.

This year marks the 50th Anniversary of the World Economic Forum. The event was held in Davos, Switzerland. This year’s forum features around 3,000 participants from around the world. Topics ranged from the global economy, climate change, geopolitics, and world health.

Tokenization is Official

The fact that the World Economic Forum featured a session on tokenization and blockchain technology, in general, is a huge nod of approval for the market moving forward. You should expect to see the pace of adoption improve significantly as these influencers return to their homes with this bevy of new information.

 

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.