Standardization is essential to enable crypto adoption
Traditional financial markets rely on established standards for information flow, ensuring effective trading and compliance. The rise of decentralized finance (DeFi) and digital assets, such as cryptocurrencies and tokenized securities, faces challenges due to a lack of standardization. Current platforms provide inconsistent data on tokens, hindering adoption. Global initiatives aim to create standards similar to those in traditional finance, which generate significant economic benefits. Unique identifiers like ISINs and CFIs exist for traditional assets, and similar systems are proposed for digital assets to enhance tracking and compliance. Standardized data formats will improve transparency amid regulatory scrutiny. Global collaboration is essential for interoperability and reducing market fragmentation. Initial steps toward standardizing digital assets are underway, supported by regulations like the EU's Markets in Crypto-Assets (MiCA). The future of standardization in digital assets remains uncertain, with potential challenges ahead.
