Notable personalities cryptocurrency share their forecasts and predictions about the industry security token for the current year. What will 2020 be like for the cryptographic industry, what difficulties will it have to overcome and what will be the most popular this year?
You'll find answers to these questions later in the article.
Security Tokens industry in 2020
We believe that all financial institutions are now convinced that tokenization will finally happen. The pressure on margins for these players is still growing, and regulations are becoming more and more restrictive and complicated for these institutions.
Changes are necessary. Central banks announcing digital currencies will have a significant impact on adoption. We believe that this will happen earlier than expected. Financial institutions are completing the testing phase, many of them have already announced this year, and are currently launching their own initiatives. Mowi Luc Falempin, CEO and founder tokens.
In turn for Oscar Jofre, CEO and co-founder KoreConX, trust is an important factor for this year:
Trust - 2020 must be a year of building trust. If we fail to achieve this this year, investors will not want to invest in companies using this method of raising capital. To gain this trust, the key action should be to bring them all together and make sure that no one leaves our group.
Challenges for the Security Tokens industry, individual and institutional adoption
The biggest challenge for this year is still the huge gap between traditional methods of financial services and the constantly growing tokenization market. This gap is manifested in user experience, market liquidity, cost structures, the availability of high-quality assets and the credibility of retail investments. However, all this will change in 2020.
Earlier most STO (Security Token Offerings) was available only to qualified and experienced investors. However, as the issue platforms matures, tools and regulations become more common, assets will soon be available as securities tokens. – speaks his opinion Dan Doney, CEO Securrency.
The key factor are players where everyone feels comfortable from an institutional point of view. More specifically, a road is needed to introduce digital securities to the platforms of the major financial institutions of individual banking.
I don't think these products are ready for retail because they are part of alternative investment schemes and are therefore less liquid. Therefore, they do not suit the retail investor. Mowi Jamie Finn, CEO and co-founder Securitize.
Asset tokenization in 2020
The best asset class suitable tokenization are real estate. This is not just the largest asset class. The real estate industry is suffering from a lack of liquidity and problems related to data management.
Vertalo is very excited about this direction for 2020. This year we will announce several major initiatives in this field, including a large partnership with Prime Trust, where we will digitize billions of dollars from private real estate investments. responds Dave Hendricks, CEO and co-founder Vertalo.
He speaks more optimistically Borda Mason, CEO Tokensoft:
We believe that every traditionally served resource will eventually get on the road blockchain. However, those that can enjoy the most interest will probably be the simplest ones, such as tokenization of shares or shares.