Singapore – SEC Commissioner Hester Peirce said Tuesday that the regulator is open to engaging in the industry’s participants in the tokenization of products while emphasizing the complexity of how these tokenized assets interact with their traditional colleagues.
“We are willing to work with people who want to tokenize, we encourage them to come and talk to us,” Peirce said while talking at the Digital Assets summit in Singapore.
A tokenized security is a blockchain-based digital representation of ownership or rights in an underlying asset, such as shares or bonds. This means that the same security can exist in both traditional paper certificates and electronic certificates as well as in blockchain-based tokens.
The key question Peirce pointed out is to understand how these different forms of the same security relate to and interact with each other.
“Some of the questions are how interacting a tokenized security with other iterations of security and other forms of this security,” Peirce explained, calling for a nuanced approach to regulation of tokenization and said,
“Depending on how things are tokenized, it can be one of many different things,” she noted.
Tokenization stands out as one of the few cryptocurrency-under-sectors along with stablecoins with significant uses in the real world. Financial institutions around the world adopt tokenization to improve the market’s liquidity and operational efficiency, which drives a transformative shift in how assets are issued, traded and controlled in the global financial system.
From Tuesday, the total market for tokenization of the chain was valued at $ 31 billion, according to Rwa.xyzWith $ 714 million of what’s tokenized shares.
McKinsey analysis indicates that the market sheath for all tokenized assets could reach about $ 2 trillion by 2030.
