Token Securities Signal Changes in the U.S. Financial System

Tokenization technology is gaining attention in the U.S. financial system by eliminating friction with intermediaries. Nadine Zakhar, Executive Director of the U.S. Depository Trust & Clearing Corporation, explained that tokenized stocks represent the process of digitally converting 1.4 million securities. The digital replicas created in this process are referred to as 'digital twins,' maintaining all rights and attributes of the original assets in the digital environment. Assets are stored in a 'wallet,' allowing investors to fractionalize ownership or trade 24/7. Asset-backed utilization is possible, and tokens remain in the investor's wallet. Zakhar anticipates that the U.S. government will allow tokenized assets to be used as collateral for home purchases. Additionally, they can be freely utilized in cross-border transactions, enabling real-time liquidity. In case of loan condition defaults, 'on-chain liquidators' can swiftly reclaim collateral. Tokenized assets are linked to smart contracts, automating investment operations and enabling personalized investments.