Tokenization implies the converting of financial assets-shares, bonds or real estate-to tokens that can be traded in the blockchain systems. This should increase transaction transaction transparency, reduce calculation time and reduce transaction costs, NASDAQ representatives assure. If the regulator approves the exchange initiative, investors will be able to first trade securities with calculations through blockchain on a large American exchange.
NASDAQ insists: tokenization does not bear security risks for investors. Tokenized tools should have similar rights and privileges as ordinary securities. Then tokenized and traditional assets will use the same book of orders, following the same rules of execution. Otherwise, Nasdaq will work with tokenized assets as with individual tools that have their own trade conditions.
Coinbase American crypto -rope has recently turned to the SEC for permission to offer its customers tokenized shares. Large banks Bank of America and CITI are studying the possibility of launching tokenized assets, as well as inclusion in the work of stablecoins and other financial products based on blockchain. Tokenized securities have already begun to bargain at several European sites. However, NASDAQ criticized such sites because they offer access to American actions without providing investors with the actual ownership of the shares.
However, the SEC is caution. The regulator fears that with insufficient supervision, tokenization can create new vulnerabilities and risks of preservation of funds. The Commissioner SEC Esther Peirce explained: tokens-races should be regulated according to the current laws on securities.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
