Shayne Coplan, founder and CEO of Polymarket, said in a statement on Tuesday that the deal is a ”major step in bringing prediction markets into the financial mainstream.”
Tokenization is the process of turning real-world assets into digital tokens. It uses blockchain technology that powers cryptocurrencies to create digital tokens as stand-ins for things like bonds, real estate or even fractional ownership of a piece of art and that can be traded like crypto by virtually anyone, anywhere at any time.
Advocates say tokenization is the next leap forward in crypto and can help break down walls that have advantaged the wealthy and make trading cheaper, more transparent and more accessible for everyday investors.
But critics say tokenization threatens to undermine a century’s worth of securities law and investor protections that have made the U.S. financial system the envy of the world.
Interest in tokenization has gotten a boost thanks to the election of President Donald Trump, who has made enacting more crypto-friendly regulations a top priority of his administration and signed a new law regulating stablecoins.
Shares of Intercontinental Exchange rose about 1 % in morning trading.