Ophelia Snyder, co‑founder of 21Shares, told CoinDesk’s Jennifer Sanasie on the Public Keys podcast that tokenization remains a point of contention between crypto innovators and traditional finance firms.
Tokenization’s Core Benefits and Current Gaps
Snyder emphasizes that blockchain‑based tokenization can streamline settlement rails and accelerate asset movement. She points out that most blockchain projects focus on transaction speed while overlooking the post‑trade processes that banks and asset managers rely on.
She notes that many discussions ignore how tokenized assets integrate with existing books‑and‑records systems, compliance workflows, and regulatory reporting requirements.
Operational Challenges for Financial Institutions
Financial institutions must adapt risk‑management frameworks to accommodate assets that trade 24/7. Snyder warns that third‑party software vendors have yet to modify their platforms for blockchain‑native transactions.
She adds that the lack of seamless integration hinders investors from fully leveraging tokenized products within the broader market infrastructure.
Scaling Tokenization for the U.S. Capital Markets
Snyder argues that the primary obstacle is scale, not functionality. She cites that a project handling a single billion dollars would be modest compared with traditional financial flows.
She concludes that without addressing operational and scaling issues, tokenization cannot meet the volume demands of the U.S. capital markets, limiting its appeal to crypto investors and broader market participants.