Interest in blockchain technology from large institutions like BlackRock and PayPal continues to grow, setting the stage for what may be a transformative shift in finance.

In a recent interview ahead of the Benzinga Future of Digital Assets event, Sandra Ro, CEO of the Global Blockchain Business Council, offered her perspective on the factors fueling this interest and how they might influence the cryptocurrency landscape.

Tokenization: A New Path for Traditional Finance

According to Ro, while some institutions might engage with blockchain due to "FOMO," others are exploring its potential for creating new revenue streams through tokenizing real-world assets.

Tokenized assets, including collateral, money market funds, and repos, offer a path to fractional ownership and direct digital transfer of ownership rights without physically moving items like gold. As Ro put it, these assets "improve capital efficiency, liquidity, and reduce frictions and potentially costs," allowing institutions to simplify asset management and transactions.

Rethinking Financial Products

Ro noted that despite the attention drawn by recent Bitcoin and Ethereum ETFs, she views them as merely repackaged versions of existing financial instruments. Having previously worked on regulated Bitcoin products, she commented that "they are NOT new innovations," describing both ETFs and futures as inherently traditional structures.

Ro suggested that the fundamental transformation may occur when decentralized finance (DeFi) and centralized finance (CeFi) collaborate to create "scalable, hyper-customizable financial products with embedded cash/payment leg."

A Future on the Blockchain

Ro envisions financial products being issued, transacted and settled entirely on blockchain, creating a streamlined financial environment. She noted that integrating DeFi with CeFi could enable a more efficient model where all transactions occur seamlessly on-chain. Ro expressed optimism about a "world of financial innovation" still waiting to emerge as blockchain redefines managing and moving assets.

With the Benzinga Future of Digital Assets event approaching, discussions will likely dive further into blockchain's role in traditional finance, especially as tokenization gains traction and reshapes possibilities for financial products. Ro's views indicate that blockchain may still have much to offer as it progresses beyond its current applications to enable flexible and customized solutions for the finance world.

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As the digital asset market continues to mature, the convergence of regulatory shifts, M&A activities, and adoption trends will define the future of this dynamic field. Benzinga's Future of Digital Assets event in New York City on Nov. 19 will provide industry leaders and investors with a platform to explore these developments further, offering insights into the evolving regulatory environment and the latest market dynamics.

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