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IBM exec stresses on tokenization of assets; says Facebook’s entry brings legitimacy to underlying tech



IBM exec stresses on tokenization of assets; Facebook's entry brings legitimacy to underlying tech
Source: Unsplash

In a recent talk with CNBC, Jason Kelley, IBM’s general manager of blockchain services said that the subject of crypto should be kept aside, and tokenization of assets should be brought to focus. According to IBM exec, the need of the hour was to distinguish between talk of cryptocurrencies and “tokenization” of assets. Kelley said,

“Set crypto aside and talk about tokenization, because that’s what we’re talking about.”

Tokenization of assets on blockchain refers to the process of issuing a blockchain token that digitally represents a real tradeable asset. While it has its own challenges that stem primarily from a lack of regulatory clarity, its advantages which include better liquidity, faster and cheaper transactions, and bringing more transparency and accessibility to the picture, cannot be undermined.

A report from Delloite stated,

“Tokenization could open up investment in assets to a much wider audience thanks to reduced minimum investment amounts and periods. Tokens are highly divisible, meaning investors can purchase tokens that represent incredibly small percentages of the underlying assets.”

Research from entities such as the World Economic Forum [WEF], Deloitte or McKinsey claimed that up to 10% of the global Gross Domestic Product [GDP] will be stored and transacted with the help of blockchain technology by 2025–27. Hence, it is only valid for the IBM exec to stress on the opportunities that tokenization of assets can offer.

American multinational information technology firm, IBM was, however, open to exploring blockchain tech. Kelley is of the opinion that big names such as Facebook entering the industry “helps to bring more legitimacy to the underlying technology”.

Kelley revealed that the company was willing to “foster collaborations” across industries.

“Blockchain is a team sport. Our clients are ready to work with [Facebook] and we’re ready to work with all of them to bring it together.”

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Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.