U.S. Treasury Advisory Panel Says Tokenization Could Be Big, But May Need Central Control

Tokenization has the potential to unlock the benefits of programmable, interoperable ledgers to a wider array of legacy financial assets, especially highlighting the possibility of instant and transparency settlement and clearing, for reducing the risk of settlement failure.

Even small incremental improvements in a very large market like the Treasuries market can be impactful at scale, though it also suggested caution and the likely need for the development of a privately controlled and permissioned blockchain.

The committee produced a report, which also suggested that stablecoins may need to give way to central bank digital currencies (CBDCs) in tokenization.

The U.S. Treasury Department's panel of Wall Street advisers see the tokenization of U.S. debt and other assets providing some significant potential advances, while also envisioning an inevitable need for the kind of heavy central hand.

Read at Coindesk