Regulatory Clarity Key to Tokenization Scaling, Experts Say

The London Blockchain Finance Summit recently brought together industry experts to discuss the path forward for tokenization scaling. Tokenization of real-world assets is on the rise, but more work is needed to create a fertile ground for it to scale. The summit's attendees agreed that greater regulatory clarity can provide the necessary standards required for interoperability, allowing tokenization to reach new heights.

The industry is calling for regulatory clarity at every stage of the tokenization cycle. Myles Harrison, Chief Product Officer at AMINA Bank, argued that regulation brings a wave of innovation, citing Europe's Markets in Crypto-Assets (MiCA) regulation as an example. Paul Landless, Partner at DLA Piper, noted that he's seen a dramatic shift among clients seeking legal and regulatory certainty in the UK.

Experts also emphasized the importance of building trust through standards. Shrey Rastogi, CEO of KAIO, suggested that tokenization needs to be acceptable for traditional institutions to scale. Abrar Akhtar, Vice Chairman (DLT/ 1, Technical Committee) at The British Standards Institution (BSI), called for experts to help shape institutional standards for financial asset tokenization.

The next step in the journey is increased interoperability, allowing tokenized assets and platforms to exchange data seamlessly. Martin Halford, CEO & CTO of Polymath Network, explained how a zero-knowledge proof system can bridge the gap between blockchain and regulators, making it easier for more participants to join the market.