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Sergey Nazarov predicts tokenisation will reshape Web3 and TradFi

Sergey Nazarov predicts tokenisation will reshape Web3 and TradFi

GrafaGrafa2024/09/19 02:35
By:Liezl Gambe

Chainlink (CRYPTO:LINK) co-founder Sergey Nazarov has predicted that real-world asset (RWA) tokenisation will surpass cryptocurrencies in value on Web3 within the next few years.

Speaking at TOKEN2049 in Singapore on Sept. 18, Nazarov emphasised the significant impact traditional finance (TradFi) will have on the blockchain industry.

He stated, “TradFi will be the largest customer of DeFi,” pointing to the growing connection between decentralised finance (DeFi) and traditional financial systems.

Nazarov highlighted Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as a key player in this evolution.

CCIP is designed to link central bank digital currencies, asset chains, and public blockchains, creating what Nazarov refers to as the "Internet of Contracts."

This system could enable seamless transactions, such as delivery-versus-payment using stablecoins, across multiple blockchains.

He added that “you can actually wrap a token in instructions so that, when it reaches its destination, it ends up triggering the event it’s intended for.”

Currently, Chainlink powers the majority of DeFi, having enabled $15.49 trillion in transaction value since 2022.

At press time, the Chainlink (LINK) price was $10.98.

Nazarov pointed out that for TradFi to adopt blockchain technology, it needs real-time data and cross-chain connectivity to integrate smoothly.

CCIP plays a crucial role in this by simplifying transactions across different systems without requiring vast chain integration.

One challenge is the need for a unified set of standards for such transactions, given the "decades of systems" TradFi operates on.

Nazarov compared this to SWIFT, a global network that connects financial institutions with a single standard.

He believes blockchain could do the same for TradFi and DeFi, allowing value to flow seamlessly across both systems.

At press time, the Chainlink (LINK) price was $10.98.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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