According to CoinDesk, Michael Hsu, the acting head of the U.S. Office of the Comptroller of the Currency (OCC), believes that tokenization of assets could be the solution to the risky complexities of settling the movement of funds and securities. Hsu spoke about the potential of tokenization at the DC Fintech Week event in Washington, stating that it is focused on solving the actual problem of settlement. He explained that the current process of asset transactions involves multiple entities and checks of validity before clearance and settlement, which adds expenses and risks of failure.
Hsu said that tokenization holds the promise to collapse and simplify this process if done correctly. The OCC is so engaged in the idea of tokenization of real-world financial assets and liabilities that it will host an all-day discussion on the topic at its Washington headquarters on February 8, 2024. However, Hsu remains suspicious of the rest of the crypto space, noting a divide between crypto and tokenization. He stated that crypto tends to be driven by the hope for speculative gain and remains replete with frauds, scams, and hacks.