Crypto Doesn’t Need More Tokens

A $4.2 billion acquisition is a clear sign that tokenization is maturing, when Bullish bought Equiniti, a transfer agent that maintains ownership records and processes corporate actions for nearly 3,000 public companies. The New York Stock Exchange is also developing a round-the-clock platform for tokenized securities with instant settlement and stablecoin-based funding. Neither move is intended to create another token, but both are building the machinery that makes a token function as a financial asset. 

Crypto has demonstrated that digital ownership can move without waiting for banking hours. The next challenge is multifold to preserve legal rights, reconcile records, move collateral, distribute payments and settle trades without creating a gap between blockchain and the asset it represents.

Tokenized Treasury and money-market products show the opportunity. Assets in the category skyrocketed as BlackRock, Franklin Templeton and others expanded onchain funds. Yet that remains small beside the $7 trillion held in U.S. money-market funds. Conventional assets can be tokenized, but the time has come to see whether those assets can become part of markets that institutions are willing to use. 

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