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There is currently a view that tokenization will solve many problems in the financial sector, which may be correct, or it may not be.
Stablecoins, like banks, involve the issuance of new currency. The current development trajectory of stablecoins has raised many significant questions, such as how they integrate with the traditional fractional reserve banking system. In this system, banks retain only a small portion of deposits as reserves, while the rest is used for lending, which effectively creates new currency.
1. The Tokenization Craze
The prevailing sentiment is to "tokenize everything," from publicly traded stocks to private market shares, and even U.S. Treasury bonds. This is generally beneficial for the crypto space and the world as a whole. When considering the dynamics of the tokenization market from fundamental principles, the following points are particularly key:
How does the current asset ownership system operate?
How will tokenization change this system;
Why the initial scenario of tokenization is necessary;
What is "Real Dollar" and how is the new currency created.