Domenik Gerapetritis on Market Predictions for Traditional and Tokenized Securities


The path carved in the economic landscape by the evolution of digital-ledger technologies is spurning many predictions regarding the future of traditional and tokenized securities. Some of the factors at play include security, profit potential, investment risk, and public perception of the cryptocurrency world.

What some see as opportunities for a new level of public oversight, transparency and accountability, others view as a threat to the traditional banking system. As acceptance grows, we’ll very likely see an explosion in tokenized security offerings as security protocols advance and the industry gains the trust of a somewhat wary and misinformed public.

It’s more than likely that we’re approaching the top of the market (if we’re not already there), and there’s a consensus in the finance industry that the next few years will present some turbulence. How will things look on the upside as the market corrects and we rebuild a new market based on emergent financial models and product offerings based on the digital ledger?

It’s certain that as approach the peak of the bell curve of the product adoption lifecycle, we’ll reach the late adopter/early majority phase and widespread acceptance and demand for cryptocurrency and Blockchain integrated and derived financial products.

Are our trusted bank brands destined to be relics of a financial model structured to meet the needs of a post-depression era economy? For some, Yes… but most will find ways to reinvent themselves to integrate cryptocurrency products and transactions into their traditional infrastructure. We’re already seeing indications that major banking players such as JPMorgan Chase are exploring new ways to provide financial services to crypto investors.

Will banks be able to keep up? Maybe, maybe not, but some will make the transition successfully to the crypto-banking market.

A key mitigating factor in the growth of the crypto space is the public concern regarding security issues presented by the decentralized and unregulated nature of the Blockchain. Reasonably, investors fear the potential for fraud, data loss and corruption, and other legal entanglements. While these concerns are warranted, efforts by the industry to educate consumers are shifting attitudes and increasing the public’s comfort with this still-revolutionary financial model.

So what’s the general outlook for tokenized securities and what will be the deciding factor in what model predominates as we reach new levels of growth in the next decade?

The answer to the first is Excellent, and the latter: Security. This is the defining issue in the evolution of our industry toward widespread acceptance and expansion of the cryptocurrency market. Although not a popular idea among crypto purist, the key to a viable future for the Blockchain is a workable regulatory model to ensure the integrity and independence of the ledger.


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