Tokenization benefits ‘light at first,’ but will expand if democratized: NYDIG

NYDIG's global head of research, Greg Cipolaro, stated that the initial benefits of tokenizing assets like US stocks on networks such as Ethereum are minimal, primarily involving transaction fees and network effects from storage. However, these benefits will expand significantly if tokenized assets achieve greater access, interoperability, and composability within decentralized finance (DeFi), potentially serving as collateral or assets for lending and trading. Cipolaro noted that while tokenization is a growing trend, realizing its full potential requires time for technological development, infrastructure build-out, and regulatory evolution, as tokenized assets often still require traditional finance structures like KYC and whitelisting, despite offering benefits like near-instant settlement and transparency.

(Source：Cointelegraph)