According to BlockBeats, Greg Cipolaro, NYDIG's Global Head of Research, stated in a report that while tokenization of stocks might not immediately yield significant benefits for the crypto market, its advantages could gradually become apparent with better integration into blockchain systems.
Cipolaro noted that networks supporting these assets, such as Ethereum, initially offer modest returns. However, as accessibility, interoperability, and composability improve, the benefits are expected to grow. He mentioned that initial gains primarily come from transaction fees generated by trading tokenized assets, and the blockchains hosting these assets will experience enhanced network effects due to storage demands.
In the future, these real-world assets might integrate into decentralized finance ecosystems, serving as collateral for loans, lendable assets, or trading targets. Cipolaro emphasized that this evolution requires time, technological advancements, infrastructure development, and regulatory progress.
He also pointed out the challenges in creating tokenized assets with composability and interoperability due to their diverse forms and functions, spread across public and private networks. For instance, the private blockchain Canton Network, developed by Digital Asset Holdings, currently hosts $380 billion in tokenized assets, representing 91% of the total 'representation value' of real-world assets. Meanwhile, Ethereum, the most mainstream public blockchain, has deployed $12.1 billion in real-world assets.
Cipolaro highlighted that even on open networks like Ethereum, the design of tokenized assets can vary significantly. These assets often fall under the category of securities and still rely on traditional financial structures such as brokers, KYC/accredited investor certifications, whitelisted wallets, and transfer agents. However, he noted that companies are leveraging blockchain technology to achieve advantages like near-instant settlement, 24/7 operations, programmable ownership, transparency, auditability, and optimized collateral efficiency.
