Token to open interaction between payments, investments
The lines between payment and investment properties are becoming increasingly blurred. In the near future it may be possible to split dinners and pay using shares, a possible mix of tokenizing assets.
Rob Dursky, senior director of tokenization at Constellation Development Foundation, shared the prediction at the TokenizeThis 2024 event on May 9 in Miami. According to him, the bridge between payments and investments opens up new possibilities for financial products. Dursky said:
“With partners like Franklin Templeton, Wisdomtree and others who are putting out this new round on the chain, we're looking to unlock the product that we're seeing now; […] But you also want to make it seamless as a payment tool.
Tokenization is the process of converting rights or ownership of assets, such as real estate or stocks, into digital tokens on the blockchain. This allows for a digital representation of the asset, allowing for fractional ownership, increasing liquidity and making certain financial products more accessible to small investors.
“There's nothing stopping us from splitting the check at dinner here, and since I can send you $20 in Stellar in 3.6 seconds, I'll pay at Franklin Temple. […] If you forget about that, you're still getting 5%, 6% a year on that dinner. […] This positive blurring between investment and payoff is because it's worth it in the end, right? And we are unlocking value movement.
Ripple's Vice President of Engineering, Bradley Chase, participated in the panel and spoke about customization trends coming from enterprise customers. According to Chase, enterprises are looking to accept stablecoin payments and hold tokens on-chain as an additional means of generating revenue.
“Those customers now have their own customers who want to pay in stablecoins and want to hold those stablecoins. So that's the easiest gateway for them into the space on and off.
More than $1 billion worth of US Treasuries have already been exchanged across Ethereum, Stellar and other blockchains. The latest estimate from Ripple forecasts that tokenized markets will reach $16 trillion in the coming years, a figure eight times greater than the total market capitalization of the entire cryptocurrency sector.
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