NYDIG Research Director: Stock tokenization will not immediately bring huge benefits to the crypto market; its effects will gradually become apparent.

According to Mars Finance, on December 13th, Greg Cipolaro, Global Head of Research at NYDIG, stated in a report released on Friday that stock tokenization will not immediately bring huge benefits to the crypto market, but its benefits will gradually emerge if such assets can be better integrated with blockchain. "The initial returns on the networks these assets rely on (such as Ethereum) are relatively small, but as the accessibility, interoperability, and composability of the assets improve, the returns will grow in tandem," Cipolaro wrote in the report. He added that the initial returns mainly come from transaction fees generated by tokenized asset trading, and the blockchains hosting these assets will also "enjoy increasingly enhanced network effects" due to storage needs. "In the future, these real-world assets may be integrated into decentralized finance ecosystems, becoming collateral for lending, lendable assets, or trading instruments," Cipolaro said, "but this will take time, and can only be realized after technological development, infrastructure improvement, and the evolution of regulatory rules." He also pointed out that building tokenized assets with composability and interoperability is not easy because "their forms and functions vary greatly" and they are distributed across public and private networks. For example, Canton Network, a private blockchain created by Digital Asset Holdings, currently hosts $380 billion worth of tokenized assets, representing 91% of the "represented value" of all real-world assets. Ethereum, the most mainstream public blockchain, has deployed $12.1 billion worth of real-world assets. Cipolaro emphasizes that even in open networks like Ethereum, the design of tokenized assets can vary greatly. "These assets typically fall under the category of securities and still rely on traditional financial brokers, KYC/accredited investor verification, whitelisted wallets, transfer agents, and other structures." However, he also states that businesses are leveraging blockchain technology to achieve advantages such as "near-instant settlement, 24/7 operation, programmable ownership, transparency, auditability, and optimized collateral efficiency."