Recently, blockchain tokenization has become more popular in the financial sector. It enables people to safeguard their ownership rights or assets by converting them into digital forms. The German generational bank DekaBank has disclosed intentions to launch its blockchain-based tokenization platform the following year.
However, according to the specifics, money and equities are the main emphasis rather than common crypto assets like Bitcoin.
To implement the platform in 2024, DekaBank is working with the digital asset management firm Metaco. On January 31, 2023, the two parties declared the formation of their alliance. Harmonize, the central blockchain-based platform for institutional digital assets, will be introduced as a result of the agreement.
DekaBank, a 105-year-old German bank, will utilize this year to put up the infrastructure, according to Andreas Sack, the executive in charge of digital asset custody. He mentioned that the platform is anticipated to release the company’s flagship minimum sustainable offering for its crypto custody solution. Additionally, even though the platform will officially launch next year, the first test transaction won’t happen until 2023.
Sach further disclosed that the new infrastructure is concentrating on certain sectors. DekaBank aims to tokenize bonds, equities, and other types of capital in order to create a new token economy.
The CEO said that by integrating tokenized assets across several blockchains, the company is elevating its management solution. He identified the company as the new token economy’s primary supplier.
He recognized that a number of blockchains, like Ethereum and Polygon, are already working to tokenize the sector. He is dubious, nevertheless, if current networks will become the norm for their concept.
Sack also provided an explanation for DekaBank’s choice to forego trading cryptocurrency in conjunction with Metaco. The executive asserted that because the bank is subject to the German Electronic Securities Act regulation, it is only interested in items that are regulated.
Sack said that while some governments have laws governing crypto assets, others still do not. As a result, these discrepancies in jurisdictional legislation present hazards to their operations and corporate liability.
There are several uses of tokenization in relation to blockchain technology. These include non-fungible tokenization, where tokens might reflect asset ownership, and fungible tokenization, where tokens are identical and replaceable. There are also utility tokenization and governance tokenization, in which tokens provide access to particular goods and services and decision powers, respectively.
Numerous blockchain applications have considerable advantages. It contributes to increased liquidity, the protection of crypto asset ownership rights, and the convenience of financial transactions.