Chia Hock Lai, president of the Singapore FinTech Association recently revealed his thoughts on the concept of securities tokenization, hailing it as a potential game-changer for Singapore’s fintech space.
According to a report published today by EdgeMarkets, Chia shared his opinion about STOs while speaking in a panel at the recently concluded The Future of Fintech in ASEAN event held in Singapore.
He mentioned that within the next three years, security token offerings will take on increased significance as more companies discover the possibility of tokenizing a wide range of assets using blockchain technology.
Chia then disclosed that a Singapore FinTech Association member firm was currently working to securitize cows in Myanmar and potentially make it easier for retail investors to transparently fund farm operations.
Explaining further how the cow tokenization process would work, Chia noted that the blockchain-based firm created a tamper-proof radio frequency identification (RFID) tag that could be placed on cows. These tags according to him will allow investors to know the exact cows that they’ve invested in, while other details such as the cow’s date of birth and market price will be recorded with the aid of blockchain technology.
Lastly, shares in the animals will be sold to investors, after which they can monitor their assets digitally.
Chia also disclosed that aside from the animal farms, other firms are interested in tokenizing their agricultural land, while yet another loan company could tokenize its loan books to raise funds.
“These assets could not be securitized before the emergence of blockchain technology,” the Singapore Fintech Association President noted.
Interestingly, Chia’s comment regarding STOs adds him to the list of industry experts hailing the potential of blockchain technology to revolutionize the capital markets. Last month, Stmarket.co reported that Former VISA Executive Roel Wolfert said precisely in a recent interview that security token offerings (STOs) have 'huge potential.'