Source: Cointelegraph
Original: (The first wave of asset tokenization has become a missed opportunity, but the next wave of opportunities can still be grasped)
Author's View: Arthur Breitman, Co-founder of Tezos
In 2019, the financial world witnessed a surge in 'Security Token Offerings' (STO). The concept itself is very straightforward: to represent traditional securities—such as bonds, stocks, and even structured products—on the blockchain, aiming to reduce issuance costs and expand coverage. The core focus is on the primary market, that is, issuing tokens corresponding to real-world assets. Some issuers see this as a way to lower backend operational costs, while others believe that tokenization can attract a new generation of investors, particularly those crypto users who have just begun to accumulate wealth and wish to diversify their assets.
However, after the hype faded, the results were disappointing. Although technology did bring marginal cost savings, most tokens did not deliver real breakthroughs. Why? One reason is that these neatly packaged tokenized securities lack the 'excitement' or 'uniqueness' sought by crypto users—they prefer volatility, cutting-edge technology, and alternative assets. There was an 'impedance mismatch' between the target 'issuance channels' and the crypto market: products did not match the audience.
Blockchain is not just a digital filing cabinet
The early wave of tokenization also missed another opportunity by overlooking the potential of the secondary market. After all, blockchain is not just a digital filing cabinet. Its true advantage lies in achieving efficient, seamless transactions in a cross-border, cross-time-zone context. Many early projects merely hashed shareholder structure tables onto the blockchain and called it 'tokenization', hoping that this form itself would bring liquidity. But in reality, they often did not.
This area, which should have been at the forefront of innovation, ultimately devolved into routine procedures for bank innovation departments, only to be brought to market by sales teams, hoping that 'novelty' could automatically generate demand. However, without genuinely addressing market friction issues, true interest naturally will not arise.
Fast forward to today, the narrative is beginning to shift, especially in markets where structural frictions truly exist. Attention is no longer focused on the tokenization of well-established assets (like gold or mainstream stocks) but has shifted towards asset classes such as commodities that have high barriers to entry and weak price discovery mechanisms. Uranium is a typical example. As a key raw material for the nuclear energy industry, uranium's importance is continually rising as the global energy system seeks low-carbon and stable baseload power.
The AI boom and large data centers further highlight the importance of stable, clean energy. However, the uranium market has long lacked transparency and is difficult to access. Traders face complex bilateral relationships, a lack of spot trading platforms, and inefficient price discovery mechanisms, resulting in limited market participants and extremely scarce liquidity.
End 'Pseudo-Tokenization'
This is precisely where blockchain-based tokenization can bring substantial transformation. By representing physical uranium on-chain and embedding it in a regulated, compliant trading environment, a high-friction market can become more accessible. Rather than merely dressing the commodity in a digital guise for 'novelty', it addresses a real issue—global traders can now enter the spot uranium market with lower barriers.
A smoother trading environment encourages broader participation and brings more accurate price signals. Unlike early STO projects that tried to attract crypto users who were 'uninterested' in these products, uranium tokenization genuinely attracts participants who need better access channels.
This is not 'pseudo-tokenization'. Rather, it is about handling KYC and regulatory requirements through powerful smart contracts and compliance modules, ensuring that the market is both safe and open, perfectly combining the liquidity advantages of decentralized infrastructure with the security of traditional markets. The result is a more efficient system: faster trade settlements, simpler custody, and significantly enhanced global accessibility. Traders can finally enjoy the outcomes promised by blockchain: a low-friction, high-liquidity market.
Blueprint for Successful Tokenization
The case of uranium provides a blueprint for other high-friction commodities and niche markets. Imagine the key metals market, critical for the transition to clean energy, such as cobalt, lithium, and rare earths. These materials are essential for modern industry, yet their markets are as complex and opaque as the past uranium market. By applying the same logic—focusing on secondary trading, establishing global issuance channels that match assets and audiences, ensuring compliance with regulations—we can create a more efficient commodity token market, optimizing resource procurement, pricing, and trading methods.
This method succeeded because it addressed real pain points. In contrast, early tokenization resembled chasing channels to attract 'crypto whales'. But now, as long as we truly leverage the strengths of on-chain technology, we can use it to solve market inefficiencies. In the case of uranium, connecting suppliers, traders, and end-users will bring a more efficient and transparent market structure to the nuclear energy industry.
For other commodities, tokenization can also bring numerous benefits, from accelerating settlement speeds to expanding global trading accessibility, and providing more reliable market signals for industries that depend on these resources.
The era of tokenization as a hype has passed. It is now time to focus on where blockchain can truly bring transformation. For markets like uranium, which are characterized by real friction, limited liquidity, and high barriers to entry, we can realize blockchain's original promise—to build a more efficient, transparent, and user-centric market. This is a more forward-looking approach that goes beyond terminology and delivers tangible, measurable value.
Author's View: Arthur Breitman, Co-founder of Tezos
Related: Analyst: Bitcoin (BTC) hits the $2 trillion market cap threshold, with a 'crazy' surge
This article is for general reference only and does not constitute legal or investment advice. The views expressed herein are solely those of the author and do not reflect the position or opinions of Cointelegraph.
