Dan Schatt Predicts that Every Asset Class Will be Tokenized

Wilfred Michael 

Wilfred Michael

News reporter

10 February 2020,
Dan Schatt Predicts that Every Asset Class Will be Tokenized

The race to bring every asset class onto the blockchain is one that will continue until the goal is achieved, according to David Schatt, Founder of Cred, a decentralized lending and borrowing platform.

Schatt revealed his thoughts in a recent interview with Cointelegraph, discussing, among other things, how the concept of cryptocurrencies is revolutionizing banking by allowing holders to earn profits on their assets.

He predicted that within the next two years, cryptocurrency exchanges and other custodians would be forced to pay Bitcoin holders interest on their assets. Also, he noted that within the same timeline, users would be able to use their crypto holdings as collateral to obtain loans.

Regarding the possibility of tokenizing every asset, Schatt said:

I came to the conclusion in 2015 or so is that everything is going to be tokenized, every asset class will be digitized and then tokenized.

Schatt, who at some point in his career had worked with PayPal, drew comparisons between the fact that gold, which has a market cap above $8 trillion, is mostly traded as an ETF instead of as a hard asset.

With the advent of blockchain, he expects that even “monolithic, extensive assets” can be tokenized in a manner that everyone can benefit from it. While stocks could be split up to six decimal points, Bitcoin allows for more divisibility.

“A person in Ethiopia with access to the internet may one day be able to buy one cent worth of Apple stock,” Schatt said before adding, “and that’s how the Bitcoin market will go from $200 billion to $200 trillion because it’s going to envelop other existing asset classes as much as developing its asset class.”

Another entrepreneur who recently spoke about the possibility of tokenizing every asset is former Overstock CEO Patrick Bryne, who predicted last year that the security token industry would eventually be worth over $900 billion.

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