“Executives from both firms say the next phase of tokenization must prioritize functionality and compliance during a panel at Consensus in Hong Kong.”, — write: www.coindesk.com
“There’s no shortage of firms, of issuers, of companies that are interested in tokenizing,” said Graham Ferguson, head of ecosystem at Securitize, during a panel discussion at Consensus Hong Kong. “But it’s on us to figure out how to distribute these assets on-chain via exchanges in a way that is compliant, regulatory-friendly globally.”
Ferguson emphasized that despite high interest on the institutional side, distribution and compliance remain the bottlenecks. “The biggest issue that we run into is communicating with exchanges and DeFi protocols about the requirements that are necessary to adhere to our obligations as a regulated entity,” he said.
Securitize has partnered with firms such as BlackRock to tokenize real-world assets, including US Treasury funds. BlackRock’s BUIDL fund, launched in 2024, now holds over $2.2 billion in assets, making it the largest tokenized Treasury fund on the market.
Ondo Finance, which also focuses on tokenized Treasuries and exchange-traded funds (ETFs), has about $2 billion in total value locked (TVL) according to data from rwa.xzy. Min Lin, Ondo’s managing director of global expansion, said tokenized Treasuries today are a fraction of the potential market.
Both speakers stressed that the next phase of tokenization will be driven by what users can actually do with tokenized assets. Ondo recently enabled tokenized stocks and ETFs to be used as margin collateral in DeFi perpetuals — a first, Lin said.
“That brings a lot more capital efficiency in terms of the utility of those tokenized assets,” he added.
Ferguson agreed, arguing that technological advantages like programmable compliance and fast settlement aren’t enough on their own. “Utility is absolutely far and away number one,” he said. “That’s what will drive the next phase.”
Dubai and Abu Dhabi have established a solid regulatory framework for virtual assets, and each region has brought this under the auspices of a single, dedicated regulatory authority.
- Hong Kong could take lessons from the UAE and Korea regarding crypto regulation, said a member of the China National Committee, speaking at Consensus Hong Kong.
- The undersecretary from Hong Kong’s Treasury said an enduring attraction of Hong Kong is that there are “no surprises” from regulators.
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