3 months ago
DTCC Digital Assets planetary caput and managing manager Nadine Chakar made a compelling lawsuit for the benefits of tokenization successful her testimony earlier the House Financial Services Subcommittee connected Digital Assets connected June 5.
Chakar’s grounds centered connected the transformative imaginable of tokenizing real-world assets and its implications for the US fiscal markets.
She highlighted DTCC’s pivotal relation successful modernizing the fiscal manufacture done integer securities and tokenization solutions. The steadfast has been a cornerstone of fiscal marketplace infrastructure for implicit 50 years, processing a staggering $3.0 quadrillion successful securities transactions successful 2023 alone.
She told lawmakers:
“Tokenization represents a earthy improvement successful our efforts to simplify analyzable fiscal processes and heighten marketplace performance.”
Tokenization benefits
In her elaborate testimony, Chakar outlined the important advantages of tokenization successful processing and managing the lifecycle of fiscal assets, specified arsenic tokenized securities.
Chakar explained that tokenization converts rights oregon plus ownership units into integer tokens connected a blockchain, perchance revolutionizing the processing of accepted fiscal assets.
She highlighted 2 superior types of tokenization: Digital Twin Tokens and Security Tokens — some aiming to streamline transactions, trim costs, and broaden capitalist access.
She said:
“Tokenization offers accrued ratio and little costs by enabling swifter and much businesslike transactions, reducing processing inefficiencies, and amended managing reconciliation.”
Chakar besides noted that tokenization could grow the capitalist basal by making assets much accessible done accrued automation and greater information availability.
Challenges
Despite the promising advancements, Chakar acknowledged the challenges of integrating DLT into existing fiscal systems.
She stressed the request for industry-wide coordination, standardization, and robust regulatory frameworks to code information risks, compliance considerations, and interoperability issues.
According to Chakar:
“Transitioning to a DLT-based fiscal strategy volition beryllium a monumental task. It requires concerted efforts from the full fiscal ecosystem, including regulatory bodies, to found a unafraid and resilient integer assets infrastructure.”
Chakar urged lawmakers to align tokenization regulations with existing fiscal frameworks, advocating for the “same activity, aforesaid risk, aforesaid regulation” principle.
She besides called for further studies connected ensuring the ineligible enforceability of tokenized assets, operational resiliency, and due attraction nether insolvency regimes.
The station DTCC highlights imaginable of tokenization successful Congressional testimony appeared archetypal connected CryptoSlate.
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