Abrdn believes that tokenization is transformative, but it faces challenges
At the Citi Digital Currency Symposium, Russell Barlow of Abrdn said that DLT and tokenization have more transformative potential than AI, but complexity and jargon have hindered their adoption. He believes that people need to be attracted to try the technology by offering special projects, such as tokenizing well-known buildings rather than ordinary industrial buildings, or offering higher yields in bond offerings.
Barlow pointed out that many companies are currently fragmented, leading to a new phenomenon of isolation, and called for more cooperation. He suggested that regulators may need to facilitate such cooperation. When choosing a tokenization partner, it is necessary to prevent existing large companies from slowing down progress due to slow action, but also to be wary of the operational risks posed by startups due to lack of revenue.
He suggests demonstrating the technology's usefulness through small steps, such as a one-day-a-week "real estate trading day", rather than round-the-clock trading, to provide more guaranteed liquidity. These are incremental steps, Barlow concludes, that can drive the adoption of tokenization technology rather than waiting for everything to be perfect.