NYDIG Research Director: Stock tokenization will have limited benefits for the crypto market in the early stages, but the benefits will expand as it b...
TL;DR
NYDIG's Greg Cipolaro says stock tokenization offers limited early benefits to crypto markets, but gains will grow as assets integrate better into blockchains like Ethereum, boosting accessibility and network effects.
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According to a Odaily by Cointelegraph, Greg Cipolaro, Global Head of Research at New York Digital Investment Group (NYDIG), stated that stock tokenization will not immediately bring significant benefits to the crypto market, but its benefits could increase if such assets are better integrated into blockchains. "The networks these assets support, such as Ethereum, will initially benefit very little, but these benefits will increase as their accessibility, interoperability, and composability improve," Cipolaro added. He further noted that the initial benefits will be reflected in transaction fees collected when using tokenized assets, while the blockchains hosting these assets will "enjoy an increasingly enhanced network effect" from storing them.