Will tokenization of securities be the next evolution in markets?

Home Cyber Security Token Tokenization of securities will be the next evolution in markets – BlackRock... Larry Fink, the CEO of BlackRock, discussed his views on where blockchain technology is headed at the New York Times’ 2022 Dealbook Summit held on Nov. 30, saying that the future for global markets will be tokenization.

What is asset tokenization?

The process of asset tokenization de-materializes securities, meaning that the proof of ownership is now represented by a digital token. This digital token runs on DLT and executes automatically through smart contracts. Issuers are now able to reach a wider group of investors.

What are tokenized securities on a blockchain?

Tokenized securities on a blockchain may potentially represent a share or financial rights of any individual in any particular asset, the rights to receive certain benefits from the asset, or the rights to receive the proceeds if or when the asset is sold.

What are the benefits of tokenized securities?

In capital markets, tokenized securities offer substantial efficiency gains in the issuance process: This is achieved thanks to features offered by blockchain technology, such as automatically verifying and recording ownership on a distributed ledger that is publicly accessible.