Achieving Real-World Asset Tokenization Faces Two Challenges, Says VanEck CEO
The chief executive of VanEck, a global investment management giant, has identified two major obstacles to the tokenization of real-world assets. In an interview with Raoul Pal, Jan van Eck highlights liquidity as a significant issue in this process. While anyone can theoretically tokenize anything, there needs to be a market maker to facilitate buying and selling. Additionally, van Eck points out the challenge of finding a market without encountering regulatory hurdles. He suggests that Europe is a favorable location for this due to its large retail market and crypto-friendly regulatory structure.
Van Eck recently received approval from the US Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF).
Hot Take: Overcoming Obstacles to Real-World Asset Tokenization
The tokenization of real-world assets holds immense potential for transforming various industries. However, two primary challenges need to be addressed: liquidity and regulatory concerns. Ensuring sufficient liquidity in tokenized markets requires the presence of active market makers who can facilitate transactions effectively. Additionally, finding regulatory-friendly jurisdictions that support crypto investing and trading is crucial for creating a conducive environment for real-world asset tokenization. Europe emerges as a promising region due to its robust retail market and favorable regulatory framework. By addressing these challenges, the path towards widespread adoption of real-world asset tokenization can be paved.
By
By
By
By
By