How Can Tokenization Link TradFi To the Blockchain? Read The Full Story Here!
While more and more conventional advancements are brimming in digital belongings, there are many who still believe that the best approach for old-school finance and decentralized finance (DeFi) is to create collectively through ways of cross-chain world and tokenization.
The “Bridging Traditional Finance and DeFi” panel stated the importance of interoperability driving better success for crypto in conventional markets at Chainlink’s SmartCon 2022 convention.
Blockchain interoperability is a term used in cases when entirely different chains engage with one another. Tokenization is converting belongings into digital tokens for the traders to use in personal fractional bits of the underlying asset.
“By default, I’m definitely bullish on tokenization,” Victor O’Laughlen, the managing director of the head of enterprise tokenization at BNY Mellon expressed. “We’re actually looking at tokenizing all different types of assets internally and, really, tokenization for me is an enabler for interoperability,” he added.
As per O’ Laughlen, monetary establishments haven’t been linked efficiently historically. “We have our own islands and try to operate in the best way that we can, but there’s always fear and uncertainty if we connect … but there’s a lot of integration that needs to happen within banks,” he added.