Acting Director of the U.S. OCC: Asset tokenization has broad prospects, but cryptocurrency is full of fraud

Michael Hsu, acting director of the U.S. Office of the Comptroller of the Currency (OCC), said at the DC Fintech Week event in Washington that asset tokenization may be the answer to the complexity of capital and securities flow risks. Hsu said: “The whole point of tokenization is to solve a real problem, and that problem is settlement. It’s boring backend work, but it’s extremely important. Whenever an asset changes hands in the financial world, the transaction typically goes through multiple entities and checks. It is valid before it is cleared and settled, officially falling into the hands of the recipient. Transactions at any of these layers come with some risk of failure. If done correctly, tokenization promises to disrupt things and simplify the process.” But when it comes to the cryptocurrency space, Hsu remains skeptical. He believes that the divide between cryptocurrencies and tokenization seems to be growing. “Cryptocurrencies are often driven by speculation and are still full of frauds, scams and hackers. Behavior". (CoinDesk)