By Euny Hong
Publication Date: 2026-03-25 12:00:00
Tokenization, a core pillar of decentralized finance (DeFi), gives financial institutions capabilities the traditional monetary system cannot. As the report notes, “Tokenization enables the instantaneous transfer of assets and value anywhere, including across borders, at any time and at a fraction of traditional costs.”
Because on-chain transactions are recorded on an immutable shared ledger, they offer built-in transparency and reduce reliance on slow intermediaries to establish trust. That decreased friction can mean lower cost. Still, Ramamurthy cautions that tokenization “does not replace the essential safeguards required for secure asset movement.” Instead, he explains that it can strengthen fraud detection, compliance with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) rules, tax handling, privacy protections and alignment with regulatory standards across borders.
“Tokenization” may still bring to mind Bitcoin, NFTs and Guy Fawkes masks, but DeFi of…
