21Shares Co-founder: Tokenization Hype Outpaces Wall Street's Actual Readiness

Odaily Odaily reports that Ophelia Snyder, co-founder of 21Shares, stated that while tokenization can solve practical issues such as settlement efficiency and asset liquidity, there remains a significant cognitive gap between the crypto industry and traditional financial institutions regarding tokenization.

She pointed out that the greater challenge currently lies in integrating blockchain assets with the existing systems of banks, brokerages, and asset management firms. Market discussions often overlook the operational phases between trade execution and final settlement. Although the blockchain industry has made progress in transaction throughput, it still falls short of meeting the needs of traditional financial institutions in areas such as ledger keeping, compliance processes, regulatory reporting, and risk management for round-the-clock trading.

Ophelia Snyder also noted that most third-party software vendors relied upon by financial institutions have not yet adapted their systems for blockchain-native transactions. She believes the primary bottleneck the industry currently faces lies in scaling adoption, rather than the functionality itself. (CoinDesk)