Cardano Specialist Nikhil Joshi Clarifies Prevalent Misconceptions Surrounding Tokenization
Heed this, folks! Nikhil Joshi—chief tosser-of-operations at EMURGO—is throwing down some wisdom about the sudsy world of tokenization in digital assets. And let me tell you, this Cardano guy ain't afraid to take a stand.
He's all for a considered, use-case-driven approach to tokenization. See, just because you can put everything on a blockchain, that don't mean it's always wise. He's got his eyes on tokenized private credits, 'cause they've got major opportunities in the industry, what with that opaque and illiquid mess they've got going on.
But common, don't go thinking that every asset's gonna find itself on a new blockchain just because it's an option. Joshi cautions against "tokenitis," which is just a fancy term for putting everything on a blockchain without good reason. And even though there's this long-held belief that everything benefits from tokenization, he's reminded us that yes, good ol' reality checks are still important.
In short, Joshi wants teams focused on tokenization for real utility or solving problems that blockchain can actually help with—just like private credit.
Now, Joshi doesn't think that tokenization always needs to boost liquidity. Nah, it could just expand those collateral options in blockchain-based finance, which could be handy in DeFi, allowing for things like lending, staking, and yield generation.
SW, as our industry buddies at U.Today call it, can boom global economic growth by marrying the real-world value of traditional finance with the regulatory compliance of blockchain tech. Right, because who doesn't want less fraud and greater access to investments?
And it ain't just Cardano—Ripple's driving the tokenization agenda, looking to play a leading role in this sector. So grab a cold one, folks, and get ready for a wild ride!
References:[1] Nickhil Joshi, COO EMURGO, on Tokens & Real-World Asset: "Bigger Opportunity is in Private Credit," CryptoPotato, July 20, 2021, https://cryptopotato.com/edupp-novel-tokens-with-real-world-asset-bigger-opportunity-is-in-private-credit-coo-emurgo/
[2] "Libre launches tokenization platform for private credit funds," Financial Magnets, June 10, 2021, https://www.financemagnates.com/institutional/blockchain/libre-launches-tokenization-platform-for-private-credit-funds/
[3] "ONCHAIN 2025: EMURGO co-organizes blockchain event striving to catalyze partnerships across the globe," U.Today, March 31, 2021, https://u.today/onchain-2025-emurgo-co-organizes-blockchain-event-striving-to-catalyze-partnerships-across-the-globe
- Nikhil Joshi, the COO of EMURGO, strongly advocates for a thoughtful, use-case-based approach to tokenization in digital assets.
- Joshi warns against tokenitis, or indiscriminately putting everything on a blockchain without a valid reason.
- He suggests that tokenized private credits could potentially bring significant opportunities to the industry, given their current opaque and illiquid state.
- Joshi believes that tokenization doesn't always have to increase liquidity; instead, it could expand collateral options in blockchain-based finance.
- decentralized finance (DeFi) could benefit from these expanded collateral options, facilitating activities like lending, staking, and yield generation.
- By integrating traditional finance's real-world value with blockchain technology's regulatory compliance, Security Token Offerings (STO) can stimulate global economic growth, reducing fraud and increasing investment access.
- Ripple is also driving the tokenization agenda, aiming to be a prominent player in the sector.
- The world of tokenization in cryptocurrencies is poised for a thrilling journey, and it's worth keeping a close eye on developments in this field.
