Tokenization of assets: The investment of the future?

Global financial institutions are already addressing the issue. Be it BlackRock, J.P. Morgan or Goldman Sachs, “tokenized assets” are becoming more and more important internationally. In the first section of our latest #btt, Simon Censkowsky from Cashlink tells you all about the basics of asset tokenization and answers questions such as:

• What does tokenization even mean?
• Why is the topic becoming increasingly important?
• How does Cashlink make it possible for established companies?

You can find out all this in this video:

Victoria Jahn, lawyer at Waldeck Rechtsanwälte, provided us with comprehensive information on the regulation of tokenization in the second presentation of the evening. She answered questions such as:

• What are the requirements for tokenization?
• What legal framework conditions apply?
• What regulatory hurdles need to be overcome?

It pays particular attention to the opportunities offered by Security Token Offering (STO). This is a method of raising capital that is becoming increasingly important as it supplements and in some cases replaces traditional financing methods.

She also explains how regulation changes depending on the issue and type of tokenization. Another important question concerns the regimes under which tokens are to be brought to market. In the case of electronic securities, a distinction is made between crypto securities, central register securities and crypto fund shares.

Of course, an exciting insight into specific use cases was not to be missed. In the last presentation of the evening, Dr Matthias Hirtschulz from d-fine explained various use cases that are made possible by tokenization. He highlighted one in particular. He described pioneering aspects, such as the possibility of transferring electronic securities peer-to-peer on open infrastructures.

Dr. Hirtschulz explains the current capital market structure and distinguishes between FinTechs, banks, central securities depositories (CSDs) and custodians. He explains which types of assets can exist in the blockchain world and emphasizes that the type of tokenization strongly depends on the respective use case. He cites four different examples and focuses in particular on the use case of financial instruments. His key message is that this is about creating a new, more efficient capital market.

Would you like to be part of our next “Between the Towers”? Then we look forward to meeting you! Every first Tuesday of the month, we talk about all the topics that move the finance and tech scene. For each edition, we invite experts from the industry and discuss a focus topic. Afterwards, there is plenty of opportunity to network over snacks and drinks. Participation is of course free of charge.