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

BlockBeats News, December 13 – Greg Cipolaro, Head of Global Research at NYDIG, pointed out in a report released on Friday that tokenization of stocks will not immediately bring huge gains to the crypto market, but if such assets can be better integrated with blockchain, their benefits will gradually become apparent. “The networks supporting these assets (such as Ethereum) initially generate modest returns, but as asset accessibility, interoperability, and composability improve, returns will grow in tandem,” Cipolaro wrote in the report. He added that initial gains mainly come from transaction fees generated by tokenized assets, and the blockchains hosting these assets will also benefit from “increasing network effects” due to storage demands. “In the future, these real-world assets may be integrated into decentralized finance ecosystems, becoming collateral for lending, lendable assets, or trading targets,” Cipolaro said. “But this will take time, only possible after technological development, infrastructure improvements, and regulatory rules evolve.” He also pointed out that building tokenized assets with composability and interoperability is no easy task 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, accounting for 91% of all real-world assets “representing value.” As the most mainstream public blockchain, Ethereum has deployed $12.1 billion in real-world assets. Cipolaro emphasized that even within open networks like Ethereum, the design of tokenized assets can vary significantly. “These assets are generally considered securities and still depend on traditional financial architectures such as broker-dealers, KYC/ accredited investor verification, whitelist wallets, transfer agents, etc.” However, he also stated that companies are leveraging blockchain technology to achieve “near-instant settlement, 24/7 operation, programmable ownership, transparency, auditability, and collateral efficiency optimization.”