According to the CEO of global asset management giant VanEck, a number of major issues are standing in the way of real-world asset tokenization.
In a new interview with Raoul Pal, CEO of VanEck, Jan van Eck say that liquidity is a “major problem” for tokenization.
“Who provides the liquidity? Anyone can theoretically tokenize anything. But if there is a buyer and a seller of an asset, someone has to create that market.
And you think, ‘Oh John, S&P 500 – it’s so clear. So easy to praise.” But someone has to make a market for it, and someone has to make money making a market for it, so it’s not just that. [someone] can create a tokenized real-world asset of whatever, it is the one that provides the market structure around the liquidity.”
Van Eck says the second big problem with tokenization in the real world is figuring out where to create a market without “regulatory headaches.”
“In today’s world, you don’t do that in the United States. That’s fine. I’m betting on Europe just because the country has a large retail market and a regulatory structure that allows investment and trading in cryptocurrencies.”
Van Eck is one of eleven companies that received approval from the US Securities and Exchange Commission (SEC) earlier this month to launch a spot Bitcoin (BTC) exchange-traded fund.
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