NYDIG Head of Research: Stock Tokenization Will Not Immediately Bring Huge Gains to the Crypto Market, Its Benefits Will Gradually Emerge

BlockBeats News, December 13, NYDIG Global Head of Research Greg Cipolaro pointed out in a report released on Friday that stock tokenization will not immediately bring huge returns to the cryptocurrency market, but if such assets can be better integrated with the blockchain, their benefits will gradually become apparent.

“The networks these assets rely on (such as Ethereum) have initially had modest returns, but as the accessibility, interoperability, and composability of the assets improve, the returns will grow in parallel,” Cipolaro wrote in the report. He added that the initial returns primarily come from transaction fees generated from tokenized asset trading, and the blockchains that support these assets will also “enjoy increasingly enhanced network effects due to storage demand.”

“In the future, these real-world assets may be integrated into the decentralized financial ecosystem, becoming loan collateral, lendable assets, or trading subjects,” Cipolaro said, “but this will take time and can only be achieved after technological development, infrastructure improvement, and regulatory rule evolution.”

He also pointed out that building tokenized assets with composability and interoperability is not easy because “their forms and functions vary greatly” and are distributed across public and private networks. For example, the privately held Canton Network blockchain created by Digital Asset Holdings currently hosts $380 billion worth of tokenized assets, accounting for 91% of the total real-world asset “representational value.” Ethereum, as the most mainstream public blockchain, has already deployed $121 billion worth of real-world assets.

Cipolaro emphasized that even in open networks like Ethereum, the design of tokenized assets can vary significantly. “These assets usually fall into the securities category and still rely on traditional financial structures such as brokers, KYC/qualified investor verification, whitelisted wallets, transfer agents, etc.” However, he also stated that companies are achieving advantages such as “near-instantaneous settlement, 24/7 operation, programmable ownership, transparency, auditability, and collateral efficiency optimization” through blockchain technology.