Blockchain tokenization has gained more traction in the financial industry recently. It allows people to convert ownership rights or assets into digital form to secure them. In the latest development, German generation bank DekaBank announced plans to release a blockchain-based tokenization platform next year.
But according to the details, the focus is not on regular crypto assets such as Bitcoin but on funds and stocks.
DekaBank Partners With Metaco To Launch Blockchain-Based Platform
DekaBank is partnering with Metaco, a digital asset management company, as it plans to launch the platform in 2024. After closing the partnership deal, the two parties declare move on January 31, 2023. The partnership will launch Harmonize, a core blockchain-based platform providing institutional digital assets.
According to Andreas Sack, digital asset custodian executive at DekaBank, the 105-year-old German bank will use this year to prepare the infrastructure. He noted that the platform is expected to launch the minimum sustainable product offered by the company in the crypto custody solution. In addition, while the platform will be launched next year, it will conduct its first test transaction in 2023.
Furthermore, Sach announced that the new infrastructure is focused on different areas. DekaBank aims to tokenize bonds, stocks, and other funds that will open up a new token economy.
The executive stated that the company is taking its management solution to a different level as it includes token assets on multiple blockchains. He tagged the company as a key provider of the new token economy.
He acknowledged that some blockchains, such as Ethereum and Polygon, are already in the process of tokenizing the industry. However, he is not convinced that the existing network will emerge as a default in the idea.
In addition, Sack explained DekaBank’s decision not to trade crypto assets in collaboration with Metaco. The executive suggested that the bank is only interested in regulated products as they fall under the regulations of the German Electronic Securities Act.
Also, Sack stated that while some jurisdictions regulate crypto assets, some still do not have regulations. Therefore, differences in the regulations of these jurisdictions cause risks that will affect their operations and affect them as a company.
Tokenization and Blockchain Technology
Tokenization is used for various purposes involving blockchain technology. These include fungible tokenization, where the token is identical and interchangeable, and non-fungible tokenization, where the token can represent the ownership of an asset. Also, there is government tokenization and utility tokenization, where tokens give decision rights and access to certain products and services.
At important benefits of blockchain applications many. This helps to secure ownership of crypto assets, increase liquidity, and ensure convenience for financial transactions.
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