The Nas­daq exchange, which is often referred to as the “tech­nol­o­gy exchange”, has just pub­lished an arti­cle on the ben­e­fits of tok­eniza­tion and its unstop­pable adop­tion in the web, econ­o­my and cap­i­tal markets. 

We are in the midst of a shift away from a cen­tral­ized Web 2.0, which is con­trolled by cor­po­ra­tions and only gives users read and write per­mis­sions, to a decen­tral­ized shared and net­worked Web 3.0, where users can addi­tion­al­ly become own­ers of dig­i­tal assets, their data and their con­tent. This is made pos­si­ble by the inter­play of var­i­ous new tech­nolo­gies such as arti­fi­cial intel­li­gence, machine learn­ing and of course blockchain. 

The the­o­ry is that with­in Web 3.0, each asset will first be tok­enized, i.e. dig­i­tal­ly mapped and rep­re­sent­ed in dis­trib­uted ledgers, so that these assets can be instant­ly divid­ed, shared and trans­ferred world­wide with­out any inter­me­di­ary involve­ment. Tok­eniza­tion will make it pos­si­ble to map large parts of soci­ety, the econ­o­my and finance in dis­trib­uted ledgers, cre­at­ing trans­paren­cy and guar­an­tee­ing authenticity. 

Tokens can be used in a wide vari­ety of fields and in a wide vari­ety of forms. Through NFT (non-fun­gi­ble tokens), own­er­ship rights can be attrib­uted to dig­i­tal assets; through Sta­ble­coins, which are linked to a sta­ble reserve val­ue, for­eign trans­ac­tions can be set­tled instant­ly; and through secu­ri­ty tokens, tra­di­tion­al finan­cial instru­ments such as stocks and bonds can be dig­i­tal­ly mapped, there­by, improv­ing inclu­siv­i­ty and liq­uid­i­ty in tra­di­tion­al cap­i­tal mar­kets, increas­ing trans­paren­cy and mar­ket par­tic­i­pa­tion, and elim­i­nat­ing set­tle­ment risks.

We are still in the very ear­ly stages of these evo­lu­tions, and build­ing a token econ­o­my requires an ecosys­tem of exchanges, wal­let providers, cus­to­di­ans, stan­dard­iza­tion bod­ies, audi­tors, and insur­ance agen­cies inter­con­nect­ed to meet the diverse needs of mar­ket participants.

Nev­er­the­less, these devel­op­ments pro­vide a strong foun­da­tion for the token econ­o­my to con­tin­ue to evolve in 2022 and beyond. Many sec­tors and indus­tries will inte­grate tokens into their busi­ness mod­els and use them to guar­an­tee trust, unlock val­ue from con­ven­tion­al­ly illiq­uid assets, and ush­er in a new era of finan­cial inclusion.

The tok­eniza­tion of the world has just begun. Please reach out to us any­time should you have any ques­tions or projects in mind.