Experts Note The Benefits Of Security Tokens, Full Adoption Will Take Time
5 Jun 2020 — #DigitalSecurities is touted as the holy grail in democratizing access to private capital markets but since its onset, the adoption explosion still hasn’t happened yet.
“We believe that it will be a phased approach, but eventually the markets will embrace the immense efficiencies, huge cost savings and streamlined T-Instant trading available through the technological innovations and benefits that blockchain can deliver. When? [Within] the next five years.” – Nick Cowan, CEO of GSX Group Limited
“There will be for a considerable time [of] traditional and tokenized securities in coexistence. The value of #tokenization varies a big deal from use case to use case, from underlying asset to underlying asset.” – Black Manta Capital Partners, Christian Platzer
While, it may take a longer time for traditional securities to be replaced, the good news is that institutional investors will have more diversification in their portfolio with the option of investing in both types of securities, allowing them to hone their technical expertise as the traditional securities move into a digital one.