Tokenized Securities and Stablecoins: The Future of Finance?
By Space Coast Daily // November 25, 2018
In the wake of recent regulations, the crypto market has been a little lukewarm for a couple of months in 2018. Before this, investors and contributors in this market were upbeat about everything going on in the market.
This, of course, was expected considering the returns and money that the market has. Even though regulations are here, it does not mean that the market is now less lucrative. In fact, the evolution of tokens and stablecoins has resulted in a more positive outlook for the future. Because of the recent developments, the pertinent question is – what is the likely future of finance?
The Role of Tokenized Securities in the Market
Security tokens have taken center stage in recent times because of the potential they have in the capital markets and financial markets as a whole. The security token upswing has been as a result of recent regulations.
With mainstream cryptocurrencies like Bitcoin facing headwinds because of regulations, suitable alternatives for investment have been sought. Tokenized securities have particularly caught the attention of many in the industry because of their adaptability, especially in the face of regulations.
Security tokens have also been praised because of the concept of interoperability. Pundits in the market are upbeat about the benefits that come with tokenized securities.
Issues like efficiency in the markets as a result of interoperability have particularly drawn many investors. There are also many companies that have already dived into the market with a plethora of innovative products. Exchange and trading platforms are some of those that are already in development in the industry.
Stablecoins
One of the most disruptive issues in the crypto market is the volatility of coins. The prices of most cryptocurrencies rise and fall dramatically over short periods. This makes them very unstable, especially for short-term use. It is for this reason that many people have turned to stablecoins.
Stablecoins are cryptocurrencies that are created to wade the turbulence by remaining stable over volatile periods. Some of these coins are pegged on actual currencies like the dollar. Even though stablecoins have faced a lot of difficulties in their initial years, they have consistently continued to draw in users who are particularly agitated by the constant shifts of other cryptos. Some big firms have gotten involved with some stablecoins and this has helped alleviate the initial fear that users had.
Are Tokenized Securities and Stablecoins the Future of Finance?
Having understood both the tokenized securities and stablecoins, it is not difficult to see that they have some sort of future in the financial world. Currently, the world is very positive about digital technologies. In a few years’ time, technology will be deeply entrenched in most societies around the world.
In an ideal world, most people would want to see digital currencies taking over. Not only are they fast, efficient and reliable, but they also hold the key to future innovation. For these reasons, security tokens and stablecoins might just be the future of finance. A lot of work in the regulatory field is needed for this to become a reality though.
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