The landscape of digital finance is rapidly evolving, gradually expanding its jurisdiction around the globe. Many firms and local Governments are acknowledging the importance of decentralized finance (DeFi) and incorporating the blockchain network into their existing financial system.
One such remarkable innovation in digital finance is Tokenization with Securitize being a pioneer. Heading the toplines of the cryptocurrency news is Securitize, a leading tokenization platform’s announcement to launch its European campaign.
The company is starting its European campaign from Spain where it has confirmed its entry into the Spanish General Secretariat of the Treasury and International Finance’s test environment for digital asset securities.
The expansion in the European market is likely to bring drastic changes to the investment sector, creating several new opportunities for both investors and businesses.
What is Tokenization?
Tokenization is the process of converting data into non-sensitive digital tokens. These are anonymous and can be accessed without any risk of being exposed.
In simple terms, it is the process of converting traditional financial assets like stocks, bonds, and commodities into digital tokens on the blockchain. These tokens can be traded easily on digital exchanges and permit fractional ownership of the underlying assets.
Larry Fink, CEO of BlackRock said the next generation of markets and securities will be tokenization of securities showing immense support to this trend.
Expansion into the European Jurisdiction.
Securitize is a pioneer firm leading the tokenization revolution aiming to simplify the ownership of assets and provide numerous investment opportunities. They have already proven their success in the American market and now aim to launch the European campaign.
This comes as no surprise. The latest cryptocurrency news is overloaded with Europe demonstrating its growing interest in blockchain technology and digital assets. Securitize’s decision to capitalize on this comes with a strategic move to start its campaign in Spain.
Spain has a vibrant financial sector and is one of the leading economies in the European region. However, it still has certain barriers to entry like many other countries limiting its potential to become the most lucrative market. Tokenization comes as a solution to this through its fractional ownership of valuable assets. It democratizes investment opportunities, enhancing liquidity.
CEO of Securitize Europe Brokerage and Markets stated the importance of this event as they had been working for quite a while to obtain the same kind of licence in Europe that they have in the US. He believes this would give a clear overview of both sides of the market.
The significant move of Securitize to tap into the European market comes with certain regulatory concerns. However, Spain has a progressive approach towards blockchain technology and cryptocurrency-related regulations, making their decision to start the campaign in Spain lucrative.
As a part of their campaign, the company aims to collaborate with the financial institution and local businesses guiding them through the process of tokenization and offering them a larger investor network.
Flores further states that the approval to issue tokenized security is a significant achievement and while they are in Spain, they aim to cover the entire European passport.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
