Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Executives from Ondo and Securitize assert that practicality, rather than excitement, will propel the next stage of tokenization.
Executives from both companies assert that the upcoming stage of tokenization must emphasize functionality and regulatory adherence during a panel 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)
Related Posts
Key Points:
- Leaders from Securitize and Ondo Finance indicate that the advancement of tokenization will rely less on market excitement and more on providing tangible, practical applications for tokenized assets.
- While there is significant institutional interest, Graham Ferguson of Securitize notes that compliance with regulations and on-chain distribution through exchanges and decentralized finance (DeFi) protocols continue to pose significant challenges.
- Min Lin from Ondo highlights that allowing tokenized Treasuries, stocks, and ETFs to serve as margin collateral in DeFi illustrates how enhanced utility and capital efficiency can propel the next stage of tokenization.
Hong Kong — Tokenization is becoming increasingly popular, but its effectiveness hinges more on practical applications than on market speculation, according to executives from Ondo Finance and Securitize.
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newslettersSign me up
“Numerous firms, issuers, and businesses show interest 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 in a manner that complies with global regulations.”
Ferguson underscored that despite considerable institutional interest, distribution and regulatory compliance present significant challenges. “The primary obstacle we encounter is coordinating with exchanges and DeFi protocols regarding the requirements necessary to fulfill our obligations as a regulated entity,” he remarked.
Securitize has collaborated with companies such as BlackRock to tokenize real-world assets, including U.S. Treasury funds. BlackRock’s BUIDL fund, which was initiated in 2024, currently manages 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), boasts approximately $2 billion in total value locked (TVL), based on information from rwa.xzy. Min Lin, Ondo’s managing director of global expansion, noted that tokenized Treasuries currently represent only a small portion of the potential market.
Both speakers emphasized that the forthcoming phase of tokenization will be shaped by the actual use cases of tokenized assets. Ondo has recently enabled the use of tokenized stocks and ETFs as margin collateral in DeFi perpetuals, which Lin claims is a first in the industry.
“This significantly enhances capital efficiency regarding the utility of those tokenized assets,” he added.
Ferguson concurred, asserting that advantages such as programmable compliance and rapid settlement are not sufficient by themselves. “Utility is unequivocally the foremost priority,” he stated. “That will be the driving force behind the next phase.”
