Yes

>>Tokenization must provide tangible real-world utility instead of merely existing as a transfer on a blockchain.

Tokenization must provide tangible real-world utility instead of merely existing as a transfer on a blockchain.

crypthub

5 days ago

Utility Trumps Digitization in Tokenization

Genius Trading CEO Armaan Kalsi argues that simply moving assets onto a blockchain does not create inherent value. He stresses that tokenization must provide genuine, practical utility to drive meaningful market adoption. Without a clear purpose, tokenization is viewed as a hollow technical exercise.

Focusing on Real-World Application

Kalsi points out that the focus must shift from mere digitization to solving real-world friction points. Examples of true value include enabling fractional ownership or automating compliance. Successful tokenization, therefore, must solve genuine problems like slow settlement times.

Market Implications and Regulation

For investors, the underlying asset and its practical utility are more important than the blockchain technology itself. Regulatory bodies reinforce this view, ensuring tokenized securities adhere to established investor protection rules. Ultimately, the success of the trend depends on providing tangible benefits to end users.