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12 - Slides - Tian - Asset Tokenization A Blockchain Soln
12 - Slides - Tian - Asset Tokenization A Blockchain Soln
12 - Slides - Tian - Asset Tokenization A Blockchain Soln
Virtual Conference on
Fintech to Enable Development, Investment, Financial Inclusion, and Sustainability
Presented by
Yifeng Tian, University of Florida
Dr. Peter Adriaens, University of Michigan
Sources: GFYCAT
TABLE OF CONTENT
Section 1
“The biggest infrastructure
financing gaps are in Indonesia
and Mexico, while Brazil, India,
Infrastructure Gap Saudi Arabia, and South Africa”
In EMDEs
“EMDEs need to triple the current
annual spending in infrastructure
over the next decade ”
Sources: IHS Global Insight; ITF; national statistics; McKinsey Global Institute analysis
Conventional Infrastructure Financing Instruments
Section 1
Infrastructure Gap
In EMDEs
Infrastructure
Tokenization Tokenization
• Allows for the conversion of the services, economic value and ownership rights derived from
underlying assets in the off-chain real world into digital tokens ('access rights to value') on the
blockchain.
• Enabled by self-executing and self-enforcing smart contracts, next-level transparency, liquidity,
inclusivity and efficiency can be brought to EMDEs infrastructure finance.
Section 2
Infrastructure
Tokenization
Section 2
Infrastructure
Tokenization
Section 2
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
Infrastructure
Tokenization
Administration Inclusivity
Section 3 • Self-enforced administrative • Participation of small-scale
requirements and regulatory institutional investors and retail
policies programmed into smart investors
EMDEs contracts • International investors
Infrastructure • Automatic accounting and • Small projects and SME
Tokenization taxation • Global investment opportunities
• Real-time data tracking • Community shareholders
• Social audit
• Participation of communities Finance
• Secondary trading
Finance • Peer-to-peer transfers
• Reducing unreconciled funds • Lower transaction costs
• Frictionless intergovernmental • Shorter settlement time
transfers • Immutable data recording
• Lower transaction costs • Global markets
• Shorter settlement time • 24/7 exchange
Challenges
• Gaps between the novel asset classes and business models created
through tokenization and the existing regulatory framework.
• Smart contracts are still not recognized as legal contracts in most
jurisdictions
Section 3 • Bans on cryptocurrency trading in China, India, Bolivia, and Ecuador.
Regulation
• EMDEs governments are moving slowly to regulate the tokenized
market.
EMDEs • Missing alignment of international regulations and cross-border
Infrastructure transaction rules.
Tokenization • Stringent rules diminish benefits brough by tokenization.
Section 3
EMDEs
Infrastructure
Tokenization
Innovation and Collaboration
Section 3
Reducing poverty
Social equity and Reducing Knowledge sharing
and increasing Integration of SMEs
EMDEs stability geographic divide
accessibility
Infrastructure
Tokenization
• Update the legal system and regulation to ensure new participants, products,
services, and risks brought by tokenization.
Section 4
• Recognize the legal status of asset-backed tokens and smart contracts.
• Initiate a working group to develop a process for test ‘low hanging fruit’ applications.
Sources: Deloitte