This article examines Wall Street’s cautious approach to tokenizing assets and its implications for the decentralized finance （DeFi） market.
Points
- Wall Street explores asset tokenization but remains cautious about DeFi.
- Tokenization market could reach $30 trillion by 2034.
- Major financial institutions and regulators balance innovation and regulation.
- Private credit expected to play a significant role in tokenization.
- Risks associated with decentralization, opacity, and lack of oversight.
Wall Street is advancing in the tokenization of assets, yet it remains cautious about fully embracing decentralized finance （DeFi）. Tokenization, which involves converting rights to an asset into a digital token on a blockchain, is seen as a way to increase liquidity, reduce costs, and improve accessibility. However, the decentralized and opaque nature of DeFi poses significant risks.
The tokenization market could reach $30 trillion by 2034, with private credit expected to play a significant role. Major financial institutions and regulators are exploring ways to balance innovation with the necessary oversight to mitigate risks. The allure of tokenization is drawing mainstream financial players into this uncharted territory, but the path forward requires careful navigation.
解説
- Tokenization: The process of converting ownership rights of an asset into a digital token on a blockchain, making it easier to transfer and trade.
- Decentralized Finance （DeFi）: A financial system built on blockchain technology that operates without intermediaries, offering services like lending, borrowing, and trading directly to users.
- Private Credit: Loans provided by non-bank entities, often to companies or individuals who may not qualify for traditional bank loans. Tokenization could increase the accessibility and liquidity of private credit.