Two Things Stand in the Way of Tokenization of Real World Assets, According to VanEck CEO

Two Things Stand in the Way of Tokenization of Real World Assets, According to VanEck CEO

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A couple of big issues stand in the way of real-world asset tokenization, according to the chief executive of the global investment management giant VanEck.

In a new interview with Raoul Pal, VanEck CEO Jan van Eck says that liquidity is a “big issue” for tokenization.

“Who provides the liquidity? Anyone can theoretically tokenize anything. But if there’s a buyer and a seller of an asset, someone’s got to make that market.

And you think, ‘Oh, Jan, S&P 500 – it’s so obvious. So easy to price.’ But someone has to make a market in it, and someone’s got to make money making a market in it, so it’s not just that [someone] can create a tokenized real-world asset of anything, it’s who’s providing the market structure around the liquidity.”

Van Eck says the second big issue with real-world tokenization is figuring out where to make a market without a “regulatory headache.”

“In the world today, you’re not doing that in the United States. That’s fine. My bet is on Europe just because it’s got a large retail market as well as having a regulatory structure that enables crypto investing and trading.”

Van Eck is one of 11 firms that received approval from the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin (BTC) exchange-traded fund earlier this month.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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