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Executives from Ondo and Securitize assert that practicality, rather than excitement, will influence the upcoming stage of tokenization.
Executives from both firms state that the upcoming stage of tokenization must emphasize functionality and compliance during a panel discussion at Consensus in Hong Kong.
Left to right: Graham Ferguson, head of ecosystem at Securitize; Min Lin, managing director of global expansion at Ondo; and Coindesk’s Kris Sandor (Coindesk)
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Key points:
- Leaders from Securitize and Ondo Finance indicate that the evolution of tokenization will rely less on speculation and more on providing tangible, practical applications for tokenized assets.
- Although there is significant institutional interest, Graham Ferguson from Securitize mentions that regulatory compliance and on-chain distribution through exchanges and DeFi protocols pose substantial challenges.
- Min Lin from Ondo points out that allowing tokenized Treasuries, stocks, and ETFs to function as margin collateral in DeFi illustrates how enhanced utility and capital efficiency can propel the next stage of tokenization.
Hong Kong — The advancement of tokenization is gathering momentum, but its effectiveness hinges more on practical applications than on market speculation, according to executives from Ondo Finance and Securitize.
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“There is a substantial number of firms, issuers, and companies interested in tokenization,” stated Graham Ferguson, head of ecosystem at Securitize, during a panel at Consensus Hong Kong. “However, it is our responsibility to determine how to distribute these assets on-chain through exchanges while ensuring global regulatory compliance.”
Ferguson highlighted that despite considerable institutional interest, distribution and compliance challenges persist. “The primary challenge we face is engaging with exchanges and DeFi protocols regarding the requirements necessary to meet our obligations as a regulated entity,” he added.
Securitize has collaborated with firms like BlackRock to tokenize tangible assets, including U.S. Treasury funds. BlackRock’s BUIDL fund, initiated in 2024, currently possesses over $2.2 billion in assets, establishing it as the largest tokenized Treasury fund available.
Ondo Finance, which similarly concentrates on tokenized Treasuries and exchange-traded funds (ETFs), reports approximately $2 billion in total value locked (TVL) according to data from rwa.xzy. Min Lin, Ondo’s managing director of global expansion, remarked that tokenized Treasuries currently represent only a small portion of the potential market.
Both speakers emphasized that the forthcoming phase of tokenization will be driven by the actual capabilities of tokenized assets. Ondo has recently enabled tokenized stocks and ETFs to be utilized as margin collateral in DeFi perpetuals—an industry first, Lin noted.
“This significantly enhances capital efficiency concerning the utility of those tokenized assets,” he remarked.
Ferguson concurred, asserting that technological benefits like programmable compliance and rapid settlement are insufficient on their own. “Utility is unequivocally the primary factor,” he stated. “That will be the key driver of the next stage.”
