EXCLUSIVE: Tokenization Will Empower Emerging Economies, Sologenic's Bob Ras Says

Sologenic co-creator Bob Ras discussed the nuances of tokenization and its impact on global markets, particularly in emerging economies.

Tokenization is offering unprecedented opportunities for liquidity and inclusivity, he told Benzinga in an interview.

Ras views regulatory changes as beneficial for end-users and innovators. He believes tighter regulations on centralized exchanges will "give [the crypto industry] a better reputation and continue to benefit everyone."

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Major financial institutions are also playing a major role.

"A lot of big financial institutions are actually getting into tokenization," he noted, citing HSBC's HSBC venture into tokenized gold.

"I'm happy that within the past few years, we are moving towards," he said. "The whole crypto industry moving towards becoming more mature."

Ras also pointed out two critical advantages of tokenization: self-custody of assets and instantaneous settlements.

"With tokenized stock, you can do self-custody," he explained, citing how settlements can happen instantly on the blockchain.

Sologenic chose to be non-custodial.

Ras envisions tokenization's transformative potential across various sectors, including real estate and art.

"Let’s say there is an auction. You know that a famous painting is going to be auctioned. People can actually raise funds through these people to own that piece of art as well," Ras elaborated.

Regarding investor protection, Ras acknowledged the current regulatory gaps but noted that traditional financial market regulations still apply.

"You need to have the appropriate license," he said. "Based on that securities broker-dealer license, you have an obligation to be audited on a quarterly basis."

Tokenization can help economies, too, due to their capacity to enhance liquidity. They can also enable the participation of micro-investors.

"Tokenization is bringing that liquidity to the traditional financial market and other markets," he asserted. "Big financial institutions are getting into this, and that means that soon we are going to see some transparent regulatory framework around tokenization."

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