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- S&P Global Executive recently forecast the turning point for the Crypto industry.
- He Says that mass tokenization of traditional assets is too fast due to crypto.
On October 12, 2022, Chuck Mounts, Chief DeFi Officer at S&P Global, said in an interview on Scott Melker’s YouTube channel that all assets will finally be tokenized in a sufficient period of time.
S&P Global Executive’s Prediction
As Mounts said S&P has over $8 billion in yearly revenue and is laying itself for such a trend to spread out.
During the YouTube interview he explains that, “We think the tokenization of everything is going to happen. Who can predict the exact twists and turns of the pathway to that? But in the meantime, we want to make sure our organization is positioned to provide the services and products that are needed to shed light on the risks in the industry and allow shareholders to make informed decisions.”
In continuation he said “In the long term, we think the tokenization of everything will happen, but in the range from purely centralized to purely decentralized, my personal opinion is that we’re still going to end up in some blended space.”
He predicts a huge turning point for the crypto industry in the upcoming years where institutional investors start to flood the space upon getting regulatory clarity.
Mounts express his thoughts and added “I think [the industry] is going to change in the next period, whether that’s one quarter or two quarters or four quarters, I think it’s going to start changing pretty quickly as the big players have been investing human and financial capital to build capabilities, and now that we’re on the verge of getting some stablecoin legislation in the US, I think that will prove to be a turning point that allows that have already invested in their capabilities to start executing and really scale their execution.”
S&P Global’s Recent Report
On the other hand, on October 4, 2022 S&P Global issued a report titled “Smart Contracts Could Improve Efficiency And Transparency In Financial Transactions.”
The following report states that “Smart contracts are a core building block of decentralized applications, facilitating the execution of specified tasks (such as payments) based on predetermined business rules.
Using smart contracts in financial transactions can improve efficiency and reduce reliance on third parties like asset servicers and custodians, as well as make transaction resolutions faster–enhancing creditworthiness and the integrity of business dealings.
Smart contracts have had slow and limited adoption in the financial markets owing to key risks including technology issues (such as incorrect coding) and legal and regulatory ambiguities that make accountability difficult.“
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
