Tokenization still at start of hype cycle, but needs more use cases, specialists say
Tokenization is early in its hype cycle and requires more real-world utility and defined use cases to progress, according to industry specialists.Summary
Specialists at CoinDesk's Consensus Hong Kong conference suggested that tokenization, the representation of assets on blockchains, is only at the beginning of its hype cycle and must now focus on achieving real-world utility. Graham Ferguson of Securitize emphasized the need to ascribe utility to tokenized assets and navigate regulatory frameworks carefully, noting excitement for regulatory clarity that supports settlement benefits and programmatic compliance. Min Lin from Ondo highlighted the massive potential market size, pointing to the $29 trillion U.S. Treasuries market. Ondo focuses on efficiency through a 'wrapper model,' quickly tokenizing assets like stocks and ETFs to enable their use as collateral in DeFi protocols, allowing for faster scaling. In contrast, Securitize prioritizes issuing securities natively on-chain in lockstep with regulators, which presents challenges when integrating with DeFi protocols that require strict beneficial ownership tracking.
(Source：CoinDesk)