The German Parliament Has Passed the Bill for Electronic Securities

The First Wave of Tokenization Is Here

A group of experts sat down on April 14, 2021 during the 5th European Blockchain Convention (EBC) to discuss tokenization and its situation in the current market.

“The Tokenization of Financial Assets is Finally Here. Are you ready?”. Panel discussion held by EBC.

May 05, 2021, 5:15 PM CET

  • Tokenization is getting more relevant, you can’t ignore it anymore
  • NFTs are a generational shift
  • This is just the first wave of tokenization, there will be many more
  • Digital assets have its largest potential in the development of near real time capital markets

Professionals of the financial and blockchain industry argued about how security tokens may finally represent the “killer app” for blockchain, taking in account, tokenization refers to the process of converting real assets into a digital representation, or token, on a blockchain network.

Hadrien Zerah, Adoption Manager at Nomadic Labs, set the tone of the discussion disclosing how “digitization has improved efficiency and transparency in other parts of the economy, the same will occur when capital markets move from issuing securities in dematerialized format to natively digital”.

Some of the benefits of tokenization brought forward by the distinguished speakers were to enable fractional ownership and provide greater accessibility to a larger audience, automation using smart contracts and faster & cheaper transactions.

When asked about the best assets to tokenize, Thomas BorrelChief Product Officer at Polymath, claimed there is a variety of assets that organizations wanted to securitize for a while but they couldn’t because it wasn’t cost-effective, but with tokenization there is a lot of interest in real estate, and tremendous potential with fixed income type assets.

From the top left: Sebastian Kraft, Thomas Borrel , Hadrien Zerah,  Dotun Rominiyi, Jan karnath and Nadia Filali

“Fractionalization of rare collectibles will allow people to buy shares in products, which they could not have otherwise afforded. Everything will be tokenizedJan KarnathCo-Founder & CEO at Timeless

Eventually we will see tokenization of assets in both public and private blockchains, agreed the professionals. Currently there is a lot of activity in the ecosystem, more players are joining the market, as a matter of fact we will have higher competition, more products, services and lastly more clients.

On the question of how do you link NFTs with the tokenization industry, the panel enlightens the boom NFTs are experimenting today by a strong adoption of non-natural industries. There will be full of new concepts coming up and lots of companies and artists who weren’t on any radar three years ago, now they will be making millions of euros.

The experts conclude the adoption of tokenization will be quick as soon as the regulation in Europe moves rapidly. 

Nowadays the question of liquidity is still problematic, but adjustments are already happening and we are shipping into the right direction. In Germany the regulators have passed the bill for electronic securities on May 5, 2021.

EBC’s 5th edition panel discussion,  articulated by Hadrien Zerah, Adoption Manager, Nomadic Labs; Jan Karnath, Co-Founder & CEO, Timeless; Nadia Filali, Head of Blockchain, Groupe Caisse des Depots; Sebastian Kraft, Senior Product Owner DLT, Commerzbank; Dotun Rominiyi, Blockchain Strategy London Stock Exchange; Thomas Borrel, Chief Product Officer, Polymath.

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