The Good Tech Companies - How Tokenization is Reshaping Institutional Investments

Episode Date: September 25, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/how-tokenization-is-reshaping-institutional-investments. Cloris Chen, CEO of Cogito Finance, discusses the convergence of traditional finance and DeFi through asset tokenization. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #behind-the-startup, #cloris-chen, #cogito-finance, #cogito-finance-ceo, #rwa-tokenization, #defi, #tokenization, #good-company, and more. This story was written by: @ishanpandey. Learn more about this writer by checking @ishanpandey's about page, and for more stories, please visit hackernoon.com. Cloris Chen, CEO of Cogito Finance, discusses the convergence of traditional finance and DeFi through asset tokenization, AI-driven portfolio management, and the challenges of scaling RWA products in the evolving financial landscape.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. How tokenization is reshaping institutional investments, by Ashan Pandey. In this illuminating interview from our Behind the Startup series, we sit down with Cloris Chen, the visionary leader behind Cogito Finance. With a rich background spanning both traditional banking at HSBC and the cutting-edge world of decentralized finance, Chen offers unique insights into the future of finance. spanning both traditional banking at HSBC and the cutting-edge world of decentralized finance, Chen offers unique insights into the future of finance. As Kagato Finance pioneers the tokenization of real-world assets and collaborates with eye-driven platforms like Singularity DAO, Chen shares her perspective on how these innovations are set to reshape institutional

investments and bridge the gap between traditional and decentralized finance. Ashan Pandey. Hello Chloris Chen, it's a pleasure to welcome you to our Behind the Startup series. Your background spans both traditional finance and DeFi. Please tell us about your journey and how has your experience at HSBC and as a treasury director influenced your approach to leading Cogito Finance? Choris Chen. Thank you for having me, Ashan. My experience in corporate banking, as well as my personal touchpoints with crypto, gave me unique insights in Tobit worlds, how large financial institutions are running their business, how they approach blockchain, investments, and regulations, and compare it to the Wild West Web 3 full of degens where meme coins rain and to be frank it's fascinating

because years ago we all thought these worlds would not merge now what we're doing at kagato is exactly that blending the lines of trad phi and defy this is the future of both crypto and traditional markets tokenization is the future ashan pandi tokenization is at the heart of kagato's. How do you see tokenizing fixed income assets and equities reshaping institutional investment products? Chorus Chen. To understand the significance of tokenized assets, you have to look at it from both sides. On one hand, for traditional investors, there's the issue of accessibility to capital markets in certain regions, and we not only simplify that process, but make

the investment possible. On the other hand, you have crypto companies with on-chain treasuries struggling to invest their stable coins into traditional assets due to excessive barriers. Fixed income assets are particularly important for these companies because they help hedge risks of crypto overexposure and its cycles. By tokenizing financial instruments, we make them transparent, transferable, programmable, and composable, features that are innovative from the perspective of how the current market operates. Ashant Pandey. How will Cogito Finance's integration with Singularity DeoCi-driven DynaVaults improve access to tokenized RWAs for DeFi users, and what makes this collaboration unique? N** Chloris Chen. Integrating tokenized RWAs for DeFi users, and what makes this collaboration unique.

N** Chloris Chen. Integrating tokenized RWAs is a really important step not just for DynaVaults but also for DeFi as a whole. Crypto and traditional markets need to work together to manage risk, optimize returns, and enhance the performance of diversified vaults. Our integration is unique because we are tapping into AI-driven portfolio management, something that is truly meaningful in today's world with how AI already plays a major role in finance. And we must stay ahead of the curve. Ashan Pandey. With RWA tokenization being hailed as one of DeFi's fastest-growing sectors, what challenges do you foresee in scaling these products, particularly in terms of regulatory compliance and expanding market adoption? Chorus Chen. Many tokenized assets are classified as securities, so companies need to follow KYC and subscription processes to stay compliant.

While that's common practice for traditional investors, it's unfamiliar territory for ManionChain investors who aren't used to permission tokens. For that reason we prioritize product awareness and education. Regulatory compliance across many jurisdictions is something that we take very seriously because this allows us to cover to various markets. Ashon Pondy. How will the partnership with Singularity DAO impact the adoption of AI-driven portfolio management and RWA tokenization in both TradFi and DeFi? Chorus Chen. It's inevitable that artificial intelligence and tokenization will grow significantly in the upcoming years. Integrating both traditional and crypto assets into investment vehicles and deploying AI strategies to manage them is how finance should

be compliant, innovative, and secure. These values are universal to both TradFi and DeFi. Ashant Pandey. Finally, please elaborate on how I can uncover hidden market trends that conventional financial analysis might overlook. According to you, what is the next big thing in AI and blockchain? Chorus Chen. AI models are only as effective as the data they're trained on. Within traditional markets, we are able to tap into a vast historical data set and draw conclusions. While AI may not predict black swan events, it can anticipate various scenarios based on both fundamental and technical analysis, which tends to be more reliable in traditional markets than in crypto, where sentiment plays a larger role. As for what's next, I believe the tokenized AI economy

will be huge, it's creating new markets within the sector that is growing exponentially. Don't forget to like and share the story. Tip Vested Interest Disclosure. This author is an independent contributor publishing via our business blogging program. Hacker Noon has reviewed the report for quality, but the claims herein belong to the author. Hashtag D-Y-O-R. Thank you for listening to this Hacker Noon story, read by Artificial Intelligence. Visit HackerNoon.com to read, write, learn and publish.