Hybrid Finance (HyFi): The Coming Integration of Securitize and Centrifuge

Asset tokenization continues to be a hot topic within the digital assets industry. Going back to the days of bitcoin’s ‘colored coins,’ developers saw the opportunity in tracking ownership of real world assets on a blockchain, thereby enabling secure asset transfers in a peer-to-peer form. Thenceforth, innovators have been creating protocols to modernize the methods by which asset creation, representation and ownership exchanges occur online using distributed ledger technology (DLT). 

Redesigning assets to be digitally native offers a wide opportunity set, from transaction efficiency to programmability. However, it still remains to be seen what the true appetite is among policymakers and traditional financial services companies for these network-based instruments; potential benefits are apparent, but the risks are still being calculated and discussed. Global monetary authorities want to ensure that our time tested laws and regulations migrate over to the digital financial system of the future.