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Kadena exec warns not all assets are fit for tokenization: 'Just because you can..'
Cesar Pereira, vice president of business development at Kadena, believes tokenization will transform the way markets operate but not every asset is an ideal candidate.
“In the most simplest terms, tokenization is nothing more than taking an asset and digitizing that asset and representing that asset in a digital token format on the blockchain,” Pereira said in an interview with TheStreet Roundtable.
From gold and real estate to bonds and private equity, he noted, “literally we can tokenize just about anything and represent it in its digital format.”
Efficiency and transparency in finance
According to Pereira, the biggest benefit of tokenization is efficiency. Settlement in traditional markets often takes days and involves “toll takers in between.”
“When you tokenize an asset, you have the ability now to increase the velocity of how that asset moves,” he said. “It also increases transparency and you can instantly settle that, what we call atomic settlement.”
He pointed to figures showing the market for tokenized real world assets (RWA) has already reached nearly $27 billion, with long-term estimates ranging from $16 trillion to $30 trillion by the early 2030s.
Not all assets make sense
Despite the excitement, Pereira was cautious about tokenized stocks.
Instead, he highlighted private credit as the area with the most promise. “Private credit in general tends to be very slow, very opaque with lots of friction,” he said. Putting the full life cycle of a loan on chain “creates tremendous benefit,” from interest payments to repayment tracking.
Kadena’s approach
Pereira explained that Kadena, a proof-of-work layer one blockchain founded by former JPMorgan executives, is focused on enabling scalable and secure tokenization.
The platform has built its own RWA token standard modeled after ERC-3643, supports little to no gas fees through its chain web architecture, and is moving toward Ethereum Virtual Machine (EVM) compatibility.
“We’re very excited that we’re becoming EVM compatible we’re starting to see an enormous excitement around people that want to come and build,” Pereira said.
Looking ahead
For Pereira, the real breakthrough will be when institutions adopt blockchain rails to replace legacy systems.
This article has been published in thestreet.com via Yahoo News.
