The boundaries between payment assets and investment assets are becoming increasingly blurred. In the near future, it may be possible to divide the cost of a meal and pay using shares of tokenized funds, thanks to the process of tokenizing assets.
During the TokenizeThis 2024 event in Miami on May 9, Rob Durscki, the senior director of tokenization at the Stellar Development Foundation, shared this prediction. He believes that bridging the gap between payments and investments will unlock new possibilities within financial products. Durscki explained:
Tokenization refers to the conversion of rights or ownership of an asset, such as real estate or stocks, into a digital token on a blockchain. This allows for a digital representation of the asset, enabling fractional ownership, increased liquidity, and greater accessibility to certain financial products for small investors.
“At a dinner, we could easily split the bill, and I could pay using Franklin Temple funds because I can send you $20 in just 3.6 seconds on Stellar… If you forget about it, you still earn an annual return of 5% or 6% on that dinner… This blending of investment and payment is possible because it ultimately involves value, and we are enabling the movement of value.”
TokenizeThis 2024. Source: Sam Bourgi/Cointelegraph
Bradley Chase, Ripple’s vice president of engineering, also participated in the panel and discussed the emerging trend of customization among enterprise customers. According to Chase, more and more enterprises are interested in receiving stablecoin payments and holding tokens on-chain to generate additional revenue.
Over $1 billion worth of U.S. Treasurys has already been tokenized on Ethereum, Stellar, and other blockchains. Ripple estimates that tokenized markets will reach $16 trillion in the coming years, a figure eight times larger than the entire market capitalization of the cryptocurrency sector.
Magazine:
Analysis of Crypto Hacks Reveals Lazarus Group’s Preferred Exploit
Tokenization: Enabling Seamless Interoperability in Payments and Investments