Tokenization enabling cross-compatibility among payments and investments

The boundaries between payment assets and investment assets are becoming increasingly unclear. In the near future, it may be possible to divide the cost of a meal and settle the payment using shares of tokenized funds, thanks to the process of tokenizing assets.
During the TokenizeThis 2024 event in Miami on May 9, Rob Durscki, the senior director of tokenization at the Stellar Development Foundation, shared this prediction. He believes that the convergence of payments and investments will lead to new opportunities in the financial industry. Durscki explained:
Tokenization involves converting the rights or ownership of an asset, such as real estate or stocks, into a digital token on a blockchain. This allows for a digital representation of the asset, enabling fractional ownership, increased liquidity, and greater accessibility to certain financial products for small-scale investors.
Durscki further stated, “There is no reason why we couldn’t split the bill for a dinner, and I could pay using funds from Franklin Temple because I can send you $20 in just 3.6 seconds on Stellar… Even if you forget about it, you would still be earning an annual return of 5% or 6% on that dinner. This blurring of the line between investment and payment is possible because ultimately, it’s all about value. We are unlocking the movement of value.”


Image Source: Sam Bourgi/Cointelegraph
Bradley Chase, the vice president of engineering at Ripple, also participated in the panel discussion and highlighted the customization trends observed among enterprise customers. According to Chase, an increasing number of enterprises are interested in receiving stablecoin payments and holding tokens on-chain to generate additional revenue.
Over $1 billion worth of U.S. Treasurys have already been tokenized across various blockchains, including Ethereum and Stellar. Ripple estimates that the tokenized markets will reach $16 trillion in the coming years, which is eight times larger than the total market capitalization of the entire cryptocurrency sector.
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