With tokenization offering significant efficiency savings and global liquidity pools for existing regulated asset classes, securities tokens appear poised for rapid adoption within the overall business community.
To discuss the changing regulatory climate surrounding securities tokens, Cointelegraph spoke with Roberts Cooper, the CEO of the securities token custodian company, Digivault.
Securities tokens are increasingly accepted by regulators
Cooper said regulators are the first „dominoes“ that have to fall to cause widespread tokenization, adding that „the first dominoes are starting to wobble.
FATF meeting scheduled to discuss The News Spy compliance with Travel Rule
Digivault’s CEO highlighted the clarification of the regulatory guidelines for securities tokens in the UK last year, in addition to the policy documents issued by the German regulator in March.
„I think [regulation] is one of the most important steps because now that line is in the sand about how regulators want to work with this asset class because they clearly understand that it’s not going to go away,“ Cooper said.
„Everything that [tokenization] offers in terms of efficiency, transparency, liquidity, compliance, it makes sense for the world to be able to benefit from the technology.
„I think the addition of things like the FATF Travel Rule … will be the last element that drives the first domino,“ he added.
U.S. regulators have double standards when it comes to Bitcoin says Gurbacs
Tokenization is growing rapidly
Cooper highlighted the proliferation of industries using the token system for a variety of use cases, stating
„One day we’ll read about commercial aircraft that use tokenization for the acquisition of all their maintenance contract management. The next day, we will read about potential pension funds. The next day there will be everything from gold ETFs to property.“
Cooper said that it is not only large companies that benefit from tokenization, noting that Digivault is in discussions with many smaller companies.
„Tokenization, unlike some of the traditional values, allows smaller companies to gain traction in a space they would not have been able to before because it does not cost millions and millions of dollars to list on, for example, the Nasdaq.
Kyrgyzstan on the verge of legalising crypto-mining
The great players will lead the adoption of the values tokens
Despite his enthusiasm for the democratizing aspects of value tokens, Cooper concluded that the future of tokens will be shaped by how large entities choose to adopt the technology:
„It’s going to take time for […] some of the big institutions to decide which way they want to go in the first place before we see the real traction in terms of where we’re going to be.