Money2020 The tokenization sector must tackle challenges with interoperability
Pallavi Thakur, the Director of Strategy and Innovation at Swift, and Julien Clausse, the head of Asset Foundry at BMP Paribas, recently presented their perspectives on tokenization at the Money20/20 conference.
During their collaborative talk, Thakur and Clausse discussed the significant interoperability challenges faced by tokenization and the need for solutions at various levels. Thakur highlighted the barrier of interoperability in tokenization, noting that tokenization platforms often create isolated networks or “islands” that do not naturally communicate with each other.
Thakur expressed optimism about the potential of tokenization to revolutionize the securities market but stressed the importance of addressing the issue of isolated networks. She emphasized the need to overcome interoperability challenges at the network layer, token format layer, and data layer within tokens for seamless functionality.
Both speakers underscored the importance of overcoming the fragmented nature of the blockchain environment to ensure the success of tokenization. Clausse echoed this sentiment, pointing out the complexities of achieving true interoperability due to the diversity of blockchain projects causing issues.
According to Clausse, establishing industry standards across diverse blockchains is essential for the future of tokenization. These standards should be based on consensus among industry players and practical applications to ensure widespread adoption.
Thakur and Clausse also stressed the significance of practical use cases and industry standards for the future of tokenization. They highlighted the importance of industry collaboration in addressing interoperability challenges and cited examples like the tokenization of small-scale renewable energy projects by Swift as a successful application of industry standards. They urged the crypto industry to work together to tackle interoperability challenges and promote the growth of tokenization.
