What she’s saying: Former 21Shares co-founder Ophelia Snyder argues that crypto and traditional finance are talking past each other when it comes to tokenization.
- Tokenization solves real problems around settlement rails and moving assets, Snyder stated.
- The larger challenge is integrating blockchain-based assets with the systems banks, brokerages and asset managers already utilize.
- Existing discussions often overlook the operational processes that occur after a trade is executed and before assets are fully settled.
- Snyder joined CoinDesk’s Jennifer Sanasie on Public Keys.
The gap: Snyder stated blockchain firms have largely addressed transaction throughput but not the broader operational requirements of financial institutions.
- Questions remain about how tokenized assets fit into books and records systems, compliance workflows and regulatory reporting.
- Financial institutions also must rethink risk management frameworks if tokenized assets can trade around the clock.
- Many firms rely on third-party software providers that have not yet adapted their systems for blockchain-native transactions.
Why it matters: Snyder maintains the industry’s biggest challenge is scale, not functionality.
- A tokenization project can work at a limited scale and still struggle to support the volume of U.S. capital markets.
- “A billion dollars is nothing when it comes to traditional financial flows,” Snyder stated.
- Moving large amounts of digital bearer assets on behalf of clients requires significantly more oversight and controls than existing book-entry systems.
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