The definition of on-chain finance is transitioning from the experimental phase to practical application.
Mr. Xiao Feng, Chairman and CEO of HashKey Group, emphasizes the promotion of integration between traditional finance and cryptocurrency through tokenized securities issuance mechanisms and stablecoin projects, contributing to the completion of the on-chain financial ecosystem.
MAIN CONTENT
On-chain finance has entered the application phase, surpassing experimentation.
Businesses can issue shares directly on exchanges through SPO, bypassing traditional IPO.
Capital tokenization and stablecoins improve the lifecycle of asset issuance, payment, and circulation.
What is on-chain finance and why is it transitioning to the application phase?
On-chain finance refers to the execution of financial activities entirely based on Blockchain and asset tokenization. Through the statement of Mr. Xiao Feng – CEO of HashKey Group at the Guotai Junan Asset Management event, this field has entered a stage of practical development, no longer just an experiment.
This shift opens up opportunities for wider application, improving transparency, speed, and transaction costs compared to traditional financial methods. The integration between traditional finance and cryptocurrency is accelerated, creating a solid foundation for new on-chain financial products.
How does tokenized securities (SPO) replace traditional IPO?
SPO (Security Token Offering) is a method of issuing shares in the form of digital tokens on regulated exchanges, allowing businesses to streamline the complex procedures of traditional IPO.
The issuance of shares through Token is considered to save time, costs, and increase liquidity for shareholders. This is also a significant step that helps Blockchain technology penetrate deeper into the mainstream capital market.
Tokenization technology not only simplifies the capital raising process but also enhances transparency and security for investors.
Mr. Xiao Feng, Chairman and CEO of HashKey Group, August 13, 2023
What impact do capital tokenization and stablecoins have on the on-chain financial ecosystem?
Capital tokenization provides solutions for digitizing investment funds, while stablecoins are a type of token that stabilizes value, supporting payments and creating stability in the circulation of on-chain assets.
Combining these tools forms a closed loop for the issuance, payment, and circulation of global assets, helping the on-chain finance ecosystem develop sustainably, mitigate price volatility risks, and enhance scalability.
What resources support the maturation of on-chain financial infrastructure?
The refinement of technical standards, legal regulations, and the increase in application of tokenization from securities to stablecoins play a key role in infrastructure development.
Thanks to this, both DeFi and centralized services can coexist and support each other, helping users and businesses easily access diverse, transparent, and secure financial solutions.
What real-world examples demonstrate the trend of on-chain finance?
Many traditional financial institutions are researching and testing the issuance of tokenized securities while developing stablecoins to diversify capital raising and payment methods.
Events like the Guotai Junan asset management festival have become an important forum for sharing experiences, promoting cooperation among stakeholders, and shaping the future of on-chain finance.
Frequently asked questions
Can on-chain finance completely replace traditional finance?
Currently, on-chain finance complements and collaborates with traditional finance, enhancing transparency and efficiency rather than completely replacing it.
How does SPO differ from traditional IPO?
SPO issues tokenized securities on digital exchanges, reducing procedures, increasing liquidity, and accessing global investors faster than IPO.
Are capital tokenization and stablecoins safe?
Capital tokenization and stablecoins developed on high-security Blockchain platforms must still check legal regulations and partner implementations.
How will on-chain finance affect individual investors?
On-chain finance enables investors to easily access digital financial products, expand their portfolios, and conduct transactions more transparently and quickly.
Can small businesses apply on-chain finance?
Many small businesses have begun experimenting with issuing tokens and raising capital on Blockchain, depending on the scale and development goals.
Source: https://tintucbitcoin.com/on-chain-finance-spo-va-token-hoa-len-ngoi/
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