Welcome to the first edition of Tokeny Insights, a curated newsletter designed to give the audience an overview of the key developments in the security token industry over the past month.
Of course, there remain troublesome and stubborn hurdles to overcome before we see security tokens gain institutional and widespread adoption. Cryptos are still bearish which is in turn leading investors to be skeptical to participate in token sales. This is compounded by the fact that institutional investors are still learning the value and benefits of tokenization.
However, there has been plenty of positive news in the space. KPMG published a report in November announcing that ‘cryptoassets are now impossible to ignore’, as players such as security token platforms have entered the nascent ecosystem. The SEC and FCA made further announcements on their positions and Dubai could soon be in a position to launch fully regulated STOs. Dubai has a notable real-estate sector, an asset class that is notorious for its illiquid nature. Tokenization of these funds are an interesting use case as ownership can flow efficiently between peers through blockchain technology.
I hope you have found this edition useful. If you have any questions then please do not hesitate to contact us.