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Experts are discussing the benefits of security tokens, but say that it will take some time to implement

June 3, 2020

As a security token You gain strength in digital finance. Experts on the subject explained to Cointelegraph how they see the future of this new asset class and the technology behind it.

Nick Cowan, CEO of the tokenization company GSX Group, He was convinced that “the financial world is approaching the new digital age”.

Cowan argued with traditional values It takes several days for an operation to take place. and that the infrastructure to maintain such agreements “means this The markets are full of intermediaries and very high costs while blocking user capital. “

Experts are discussing the benefits of security tokens, but say that it will take some time to implementExperts are discussing the benefits of security tokens, but say that it will take some time to implement

Cowan claims it all The problems you mentioned can be solved by implementing security tokens. The claim leads to a “superior marketable asset because It’s about fewer counterparties, less costs and smooth transactions. At the same time, they present an advanced digital financial market infrastructure that gives back control to issuers, institutions and users. “

Explains that tokenization improves over traditional funding are enough to justify a quick and complete transition:

“We believe this will be a step-by-step approach, but ultimately the markets will take advantage of T-Instant’s immense efficiency, tremendous cost savings and streamlined trading that are available through the technological innovations and benefits that blockchain can offer. When? [Dentro] the next five years. “

Industry experts disagree

While Cowan believes that cost savings and less counterparty risk are enough to motivate the entire financial sector to move forward in the chain, Black Manta Capital Partners co-founder Christian Platzer disagrees.

Platzer told Cointelegraph that I don’t think tokenization will be replaced soon to traditional values:

“Tokenization and traditional values ​​will coexist for a considerable amount of time. The value of a token varies greatly from case to case, from one underlying asset to another. To date, full tokenization is meaningless. “

Platzer admits that tokenized securities “can be superior in issues such as liquidity, portability, tradability, and transaction costs.” Still, he notices that Change takes time:

“All important paradigm shifts take time to crystallize. Acceptance is gradual. We see more and more institutions, investment banks and exchanges investigating blockchain applications for commodity trading, and these larger companies are taking the time to transform their operating models. “

Black Manta Capital received permission from the federal regulatory authority to hold offers for security tokens in August 2019. April 2020 Bid for more than $ 12 million of dollars in real estate in Berlin.

As Cointelegraph reported, the GRID tokenization platform of the GSX Group recently shares a company’s token for the first time. The platform itself was launched earlier that month.