SEC commissioner Uyeda acknowledges benefits of securities tokenization

SEC commissioner Mark Uyeda acknowledged that plus tokenization, including tokenization of securities, carries imaginable benefits.

Uyeda said connected June 14 that representing plus rights with a integer token connected a blockchain tin supply “security, transparency, and immutability.”

Furthermore, helium said that tokenization removes the request for intermediaries, thereby streamlining transactions and lowering transaction costs.

Uyeda named tokenization arsenic portion of broader exertion advancements, stating:

“New technologies and innovations mightiness supply further efficiencies to our planetary markets and investors.”

Uyeda cited a 2020 Depository Trust & Clearing Corporation (DTCC) whitepaper, which indicated dozens of countries person stopped utilizing carnal securities certificates arsenic they follow caller exertion that dematerializes US securities.

The aforesaid study described distributed ledger exertion (DLT) and integer and tokenized securities arsenic “cutting-edge fintech innovations.”

FCA reviewing tokenization

Uyeda besides acknowledged that the UK FCA’s Asset Management Task Force began to reappraisal the tokenization of FCA-authorized funds starting successful November 2023. He said:

“It is important to item the extent of probe [the FCA is] undertaking to let for innovation and maturation portion inactive protecting investors from harm.”

He added that the FCA’s reappraisal could pass different regulators’ steps and urged regulators to code tokenization’s costs, benefits, and risks.

Uyeda said his statements are his idiosyncratic views, not those of his chap SEC commissioners. As such, they bash not correspond the SEC’s stance connected securities tokenization.

DTCC touts benefits

 

Elsewhere, DTCC Digital Assets planetary caput and managing manager Nadine Chakar described the benefits of tokenization earlier Congress connected June 5. She said that tokenization has the imaginable to streamline transactions, trim costs, and broaden capitalist entree crossed fiscal markets.

However, contempt the benefits, Chakar acknowledged challenges successful integrating DLT into existing systems, citing the request for industry-wide coordination, standardization, and robust regulatory frameworks. She urged lawmakers to align tokenization regulations with existing fiscal frameworks, advocating for the rule of “same activity, aforesaid risk, aforesaid regulation.”

Additionally, she called for further studies to guarantee the ineligible enforceability of tokenized assets and operational resiliency nether insolvency regimes.

Similarly, VanEck CEO Jan van Eck described liquidity and regularisation arsenic imaginable obstacles to the advancement of tokenization successful the fiscal sector.

Meanwhile, the Bank for International Settlements precocious announced that tokenization and cardinal slope integer currencies (CBDCs) were a key country of focus for the regulator during 2024.

Global consulting steadfast Roland Berger said successful October 2023 that the tokenization market, worthy $300 billion, could scope $10 trillion by 2030.

The station SEC commissioner Uyeda acknowledges benefits of securities tokenization appeared archetypal connected CryptoSlate.