Tokenization Demand Is No Longer Tied To Bitcoin: Galaxy Executive
Galaxy tokenization head Thomas Cowan says interest in tokenization is now “independent of the price of Bitcoin” as institutions have started to see the benefits.
Bitcoin’s price swings are no longer affecting institutional interest in crypto technology, such as tokenization, meaning it now has a solid leg to stand on its own, according to Thomas Cowan, head of tokenization at Galaxy.
Cowan told Cointelegraph at The Bridge conference in New York City on Wednesday that there has been a “separation of the interest in tokenization from the price of Bitcoin” over the past few months.
“In previous cycles, as Bitcoin and other alts have run up, there’s been an interest in tokenization, all the major traditional financial institutions have built out their crypto and tokenization teams, and then when the prices have crashed, those teams have gotten much smaller,” he said.
Tokenization, where assets such as oil or bonds are represented digitally on a blockchain, has experienced significant growth over the past year, as the Trump administration has eased regulations on cryptocurrency, spurring interest from major traditional finance companies.
Bitcoin (BTC) has gone up and down through the year, reaching a peak of over $126,000 in early October, but it has since declined by nearly 20% to around $102,000.
Cowan said that he hoped next year would see the industry “really demonstrate” to institutions that tokenization “is just a better, faster, cheaper way for them to move and store their financial assets.”
“For these large organizations that think in decades, you really want to make sure that we’re demonstrating the clear benefits that this technology has, so that they can say, ‘Look, we see this as a durable, long-term trend. It’s inevitable,” he said.
Cowan said that stablecoins, which have exploded in popularity after the US passed laws to regulate the tokens earlier this year, are a crypto use case that is “off to the races.”
Related: Franklin Templeton expands Benji tokenization platform to Canton Network
Source: CoinTelegraph
