"The tokenization of traditional finance is back in the news, as suits in boardrooms across the United States are discussing the benefits and risks of integrating cryptocurrency into their business. The term "tokenization" refers to deploying traditional financial assets on cryptocurrency rails, digitizing analog financial assets (including currency), and thus enable the financial industry to benefit from the speed and transparency that blockchains provide."
"The survey showed that almost all CFOs expect their business to use "cryptocurrencies for business functions in the long term." Only 1% of those polled said they did not envision it. And 23% said their treasury departments "will utilize crypto for either investments or payments within the next two years," a percentage which is closer to 40% for CFOs at organizations with US$10 billion in revenues or more."
"Tim Davis, a Principal at Deloitte told Bitcoin Magazine that there are two narratives making their way through American finance, "one is whether to have Bitcoin on the balance sheet and the other is a broader appreciation of tokenization's future, which seems increasingly inevitable." He added that "the first step is often stablecoins-how to adopt them, whether to issue their own coin. More corporates are having this broader strategy conversation today than those committing to Bitcoin on the balance sheet.""
Tokenization means deploying traditional financial assets on cryptocurrency rails to digitize analog assets and gain blockchain speed and transparency. A Deloitte survey of 200 CFOs at companies with at least US$1 billion in revenue found almost all expect to use cryptocurrencies for business functions in the long term; only 1% disagreed. Twenty-three percent expect treasury departments to utilize crypto for investments or payments within two years, rising near 40% for firms with US$10 billion+ in revenue. Only 2% reported no stakeholder conversations about crypto. Corporates view two narratives: holding Bitcoin versus pursuing broader tokenization, with stablecoins often the first step.
Read at Bitcoin Magazine
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