Tokenised debt represents a digital advancement over traditional debt, improving efficiency, transparency, and accessibility while encountering regulatory challenges, as noted by Bitfinex. This innovative approach to debt utilizes blockchain technology to create digital tokens that represent debt instruments. By doing so, it aims to streamline the borrowing and lending process, making it more efficient for all parties involved. The transparency offered by tokenised debt can enhance trust among investors and borrowers, potentially leading to a more robust financial ecosystem. However, the integration of tokenised debt into existing financial frameworks raises several regulatory concerns that need to be addressed. As the market evolves, stakeholders will need to navigate these challenges to fully realize the benefits of this new financial frontier.
