SAFAKNA TURKEY – BlackRock’s CEO has argued that securities will be traded in tokenized form in the future. Thanks to blockchain technology, traditional financial assets such as bonds, real estate or other commodities can be represented in the form of tokens. Transactions using these tokenized products can be carried out without a corporate intermediary. Fink also said in his statements that the technology would be an attractive option due to “instantaneous solutions”. He also said that shutting down intermediaries would “lower fees even more dramatically.” According to him, such a scenario would mean a revolution in the functioning of financial markets.
A new era in finance begins
In November, JPMorgan conducted an experimental cross-border transaction using Polygon to tokenize the Singapore dollar, Japanese yen and bonds of the two countries. The experiment, the first of its kind, was a huge success. Thus, it has been proven that banks can transfer their day-to-day processes to blockchains. Even BlackRock is taking action on this. It was in the headlines in August after it was announced that it would offer bitcoin to its customers through a partnership with Coinbase. As a result, we are now seeing more and more financial institutions adopt blockchain technology. According to experts, such funds will mark the beginning of a new era in the cryptocurrency market.
Tokenization will come for these three cryptocurrencies
The above technological expectations do not mean that all cryptocurrencies will benefit. Fink, for example, stated that “many of these[криптовалютных и блокчейн]companies will disappear in the long run.” We can look at JPMorgan’s work to see which ones will survive. JPMorgan used the Polygon network for its first DeFi transactions. This bank choice is that Polygon is compatible with Ethereum. Thus, in addition to its programmable nature, which allows for the tokenization of assets, Ethereum serves as the largest DeFi platform overall. So Ethereum seems to be the beneficiary of traditional finance using dApps.
Ultimately, if what Fink points out becomes true, it will make cryptocurrencies like Bitcoin, Ethereum, and Polygon more legitimate. However, investors are tired of continuing to expect a quick recovery in prices. Currently, macroeconomic factors do not allow most tokens to increase in price. However, experts are confident that the market will remain strong in the long term. Assuming that headwinds such as high inflation and rising interest rates disappear, the cryptocurrency market has upside potential.
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