Hester Peirce from the SEC envisions tokenisation as the future of financial markets, offering enhanced accessibility and efficiency through blockchain networks.
US Securities and Exchange Commission (SEC) Commissioner Hester Peirce recently discussed the potential of tokenising traditional financial assets. These include stocks and bonds, which were addressed during the Crypto Task Force’s roundtable on 12 May.
Peirce highlighted tokenisation as a natural evolution of financial infrastructure, bringing crypto assets onto blockchain networks. She argued that this shift would make financial assets more accessible and flexible, offering significant efficiency and participation benefits.
At the core of the transformation are smart contracts, which automate asset management tasks like dividend distribution and asset transfers. Peirce highlighted stablecoins and tokenised money market funds as examples of blockchain enhancing financial systems.
By decentralising assets, tokenisation allows for broader participation and enables their use in more advanced financial applications, including decentralised finance (DeFi).
Despite its promise, legal uncertainties around tokenisation remain a barrier to its widespread adoption. Peirce called for clearer regulatory guidelines, stressing the importance of treating tokenised assets and traditional securities similarly.
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