Singapore – the SEC Commissioner Hester Peirce said Tuesday that the regulator is open to commit to industry participants in tokenization products, while emphasizing the complexity of how these tokenized assets interact with their traditional counterparts.
“We are willing to work with people who want to tokenize, we urge you to come to talk to us,” Peirce said while talking at the Digital Assets Summit in Singapore.
Tokenized security is a digital representation of property or Blockchain -based property rights in an underlying asset, such as actions or bonds. It means that the same security can exist both in traditional paper certificates and in electronic certificates, as well as blockchain -based tokens.
The key issue that Peirce pointed out is to understand how these different forms of the same security are related and interact with each other.
“Some of the questions are how token security interacts with other safety iterations and other forms of that security,” Peirce explained, while asking for a nuanced approach to regulate tokenization, saying, saying.
“Depending on how things get around, it could be one of the many different things,” he said.
Tokenization stands out as one of the few cryptocurrency subsectors, together with Stablecoins, with significant applications of the real world. Financial institutions around the world are adopting tokenization to improve market liquidity and operational efficiency, promoting a transformative change in how the assets are issued and administered in the global financial system.
Until Tuesday, the total chain tokenization market was valued at $ 31 billion, according to Rwa.xyzwith $ 714 million of the tokenized shares.
The McKinsey analysis indicates that the market capitalization of all tokenized assets could reach around $ 2 billion by 2030.
