NYDIG "Tokenized stocks' impact grows as integration with blockchain increases"

An analysis found that the long-term influence of stock tokenization will increase as its degree of integration with blockchain grows.

On the 12th (local time), according to Cointelegraph, Greg Cipolaro, head of global research at New York Digital Investment Group (NYDIG), said, "The initial utility that tokenized stocks provide to blockchain networks such as Ethereum (ETH) is limited," adding, "but as their integration with blockchain expands accessibility, interoperability, and composability, those benefits will gradually grow."

He explained, "The most direct benefit that blockchain receives in the early stages is the transaction fees generated during the trading process of tokenized assets," and "also, networks that store and manage tokenized assets will see their network effects strengthened over time."

Recently, in the virtual asset (cryptocurrency) industry, real-world asset tokenization (RWA), especially U.S. stock tokenization, has emerged as a key issue. Major exchanges such as Coinbase and Kraken are considering launching U.S. stock tokenization platforms domestically based on their performance in overseas markets. Paul Atkins of the U.S. Securities and Exchange Commission (SEC) also said earlier this month that "the U.S. financial system could accommodate tokenization within the next few years."

Cipolaro said, "Tokenization may become the norm. In the long term, RWAs such as tokenized stocks and bonds could be incorporated into decentralized finance (DeFi) and used as collateral assets, loan assets, and trading assets," adding, "However, considerable time will be needed for technological development, infrastructure construction, and regulatory environment arrangements."