Money2020 Interoperability issues must be addressed in the tokenization industry
At the Money20/20 conference, Pallavi Thakur, Director of Strategy and Innovation at Swift, and Julien Clausse, head of Asset Foundry at BMP Paribas, provided insights on the challenges of tokenization.
In their collaborative presentation, Thakur and Clausse discussed the significant interoperability challenges faced by tokenization platforms. Thakur highlighted the issue of isolated networks or “islands” within tokenization platforms that hinder communication between different networks. She emphasized that while tokenization is gaining momentum and has the potential to revolutionize the securities market, the existence of these isolated islands poses a major obstacle.
Thakur further explained that interoperability issues exist on multiple levels, including the network layer, the token format layer, and the data layer within tokens. Overcoming these challenges is crucial for ensuring seamless operation within the tokenization industry.
Clausse echoed Thakur’s sentiments, emphasizing the complexities of achieving true interoperability due to the fragmented nature of various blockchain projects. He stressed the importance of establishing common networks and standards for tokenization to succeed in the future.
Both speakers agreed on the necessity of industry standards and practical use cases to drive the future of tokenization. Clausse highlighted the importance of industry collaboration and urged the crypto industry to come together to address interoperability challenges. They also discussed examples of industry standards in action, such as the tokenization of small-scale renewable energy projects by Swift, which has facilitated more efficient and transparent financing and management processes.
Overall, Thakur and Clausse emphasized the need for industry collaboration, common standards, and practical use cases to overcome the interoperability challenges faced by tokenization platforms and ensure the industry’s success moving forward.
