- Coinbase (NASDAQ:COIN) has published a report on “Tokenization and the New Market Cycle.”
- The report discusses how tokenization has a lot more potential now by offering immediate settlements.
- In the past year, there has been reportedly a shift from private credit protocols to US Treasuries.
Coinbase has recently released a “Tokenization and the New Market Cycle” report that suggests tokenization as a “vital use case for traditional financial players,” which could establish a significant presence in the upcoming crypto market trends over the next 1-2 years.
The report mentioned that in 2017, the opportunity cost for tokenization was 1.0-1.5%, compared to today’s nominal interest rates exceeding 5.0%. The increase could significantly enhance the capital efficiency of immediate settlement for financial institutions, as opposed to the traditional T+2 settlement.
Coinbase stated that during the crypto winter of 2017, tokenization failed to migrate trillions of USD worth of real-world assets (RWAs) onto blockchain networks. However, the recent revival of interest in tokenization could be attributed to the crypto market’s decline in 2022. According to Coinbase, the cu…
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