As the tokenization of assets gains traction in the investment banking community, it’s clear there’s more to it than just creating a digital token. Consider a real estate asset that has been tokenized. The rental income from the property can be divided among the token holders, rather straightforward concept.
From my experience in Middle Office, it was evident that traditional investor services were a significant expense for investors. While these services are a distinguishing factor among banks, they primarily highlight the role of the custodian.
Will tokenization help reduce the cost of investor services? How does it affect governance and privacy? Token holders can be granted voting rights, enhancing their involvement in decision-making processes. However, this raises questions about privacy—do reports go to an email address, and how secure is the information?
Tokenization promises to streamline processes, reduce costs, and empower investors, but these benefits come with new challenges and considerations that must be carefully addressed.
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