The chief executive of global investment management giant VanEck, Jan van Eck, highlights two significant challenges hindering the tokenization of real-world assets in a recent interview with Raoul Pal.
Van Eck points out that liquidity poses a major obstacle, emphasizing the need for a market structure around it. While theoretically anything can be tokenized, the practicality depends on the existence of buyers and sellers, and someone must facilitate the market, ensuring profitability.
The second challenge lies in navigating regulatory complexities, as determining where to establish a market without encountering regulatory hurdles remains a crucial consideration.
Van Eck expresses confidence in Europe, citing its substantial retail market and favorable regulatory environment for crypto investing and trading. Recently, Van Eck’s firm received approval from the U.S. Securities and Exchange Commission to launch a spot Bitcoin exchange-traded fund.