At the Money20/20 conference, Pallavi Thakur, Director of Strategy and Innovation at Swift, and Julien Clausse, Head of Asset Foundry at BNP Paribas, delved into the pressing interoperability challenges within the tokenization industry. Their joint presentation emphasized the need for cohesive solutions to bridge the isolated networks created by current tokenization platforms.
Thakur highlighted the growing momentum of tokenization, poised to revolutionize the securities market. However, she pointed out a significant obstacle: the formation of isolated “islands” by tokenization platforms that fail to communicate with each other. “Tokenization is gaining momentum and is poised to transform the securities market,” Thakur noted. She elaborated on the issue, explaining that these isolated islands exist on multiple levels—network, token format, and data within tokens. Addressing these layers is crucial for achieving seamless operation.
Clausse echoed Thakur’s concerns, stressing the complexity of achieving true interoperability due to the diversity of blockchain projects. “There are multiple levels—network, token format, and data within the tokens,” Clausse explained. He underscored the need for common networks and standardized adoption across the industry.
Both speakers agreed that overcoming the fragmented and multi-leveled blockchain environment is essential for the success of tokenization. Establishing industry standards across diverse blockchains is vital, and these standards should emerge from a top-down consensus among industry players and practical, real-world applications.
Thakur and Clausse also emphasized the importance of practical use cases and industry standards for the future of tokenization. Clausse highlighted the proliferation of multiple standards, noting, “There are multiple standards now. So everybody is trying to work with unique standards.” They provided examples, such as Swift’s tokenization of small-scale renewable energy projects, which can now be financed and managed more efficiently and transparently.
In conclusion, both Thakur and Clausse urged the crypto industry to address interoperability challenges through industry collaboration and the establishment of common standards. Their insights at Money20/20 underline the critical need for unified efforts to unlock the full potential of tokenization in transforming the financial landscape.
Powered by Crypto Expert BD
Follow us on Twitter: https://x.com/CryptoExpert_BD
Join our Telegram channel: https://t.me/CryptoExpert_BD
