Here’s why Wall Street suddenly obsessed with tokenization – but on its own terms

Wall Street's interest in tokenization has moved beyond pilot projects to serious implementation, driven by the desire for continuous trading and improved efficiency. Recent developments, including approvals from the SEC and Nasdaq, regulatory statements, and legislative discussions, signal a major shift in American finance. Tokenization, the process of representing assets digitally on a blockchain, promises faster settlement, easier collateralization, and 24/7 market access. While efficiency is a key driver, the ability to mobilize collateral and control the underlying infrastructure are also significant factors. The focus is on adapting this technology within the existing financial system, with key players like BlackRock, BMO, Nasdaq, DTCC, and JPMorgan actively pursuing tokenization initiatives. Despite potential challenges like fragmentation and legal uncertainties, the direction is clear: tokenization is becoming a central part of the financial landscape, and the current debate centers on defining its implementation and control.

(Source：CryptoSlate)