“We Are at the Beginning of Tokenization of Everything”, according to the CEO of Circle.
On July 13th, Jeremy Allarie, the co-founder and CEO of the payment company Circle, spoke of the “Crypto-revolution” that the world is currently experiencing, saying that we are “at the beginning of tokenization of everything.”
Just as the Internet transformed data and communications, the blockchain is now ready to
revolutionize “every aspect of finance”
and
“reinvent public administrations and Services to [their] image and likeness”
“Once you have a global open system of immutable record keeping, [a] transaction
processing system and [a] secure computing environment, you can re-conceptualize a global basis of all aspects of finance. Commercial law and corporate, the intermediation of contracts, [and] essentially all the systems that we use in decision-making [both civic and corporate].”
The CEO spoke of a vision of a “tokenized” global economy and society, where “all form of value storage becomes a public register and crypto-token” that has free floating market value and can be negotiated in digital exchanges to world level.
Mr. Allarie added, you can “tokenize your home, car or art,” and establish open global financial relationships around any physical property.
The “Tokenization of private or public votes in all forms of social governance” could bring with it an immutable system that is more transparent and responsible than those currently available. Allaire mentioned five categories of crypto-assets, starting with cryptocurrencies
that seek privacy and that withdraw financial activities from the centralized control of governments and serve as a “public good” on the internet.
The well-known “crypto-securities” can work to represent financial contracts based on laws and a potential “beyond” of a paper contract mediated by a law firm in court. He stressed that many initial coin offerings (ICOs) are in this category. Then he mentioned the crypto-assets that support transaction settlement systems, such as Ripple (XRP) and Stellar (XLM), as well as the “very ambitious” blockchain-based platforms, such as Ethereum (ETH, which he described as “operating systems for the global economy.”
The last category of crypto-assets that Allaire exhibited were stable currencies, backed by fiat, designed to denominate financial contracts. Allaire highlighted its potential for use cases that require less volatility in the reference price, but still seek decentralization and blockchain security.
Last month, Circle closed a $ 110 million round of fundraising carried out by mining hardware manufacturer, Bitmain, after partnering to develop a stable currency backed by the US dollars. Circle’s USDC will be an ERC-20 token based on the Ethereum network and it is speculated that it will be launched in the summer. The investment caused Circle’s valuation to rise to almost $ 3 billion, an increase of almost six times since 2016.
by Emanuel Andrade
