As institutional tokenization gained momentum rapidly last week with CFTC inviting crypto CEOs to discuss stablecoins as possible eligible collateral in the derivatives market and Senator Bill Hagerty introducing his stablecoin bill, the urgency with which firms are looking at their tokenization strategy is palpable in my conversations.
It has become apparent to me critical to anyone’s tokenization strategy is a GTM playbook that articulates product, tech, ecosystem and regulatory requirements. So I’ve begun thinking of a framework to explore this evolving landscape from an investor’s perspective and a product lens from ground up.
What are the critical building blocks of an open, composable, blockchain-powered financial system - one designed to serve billions of investors faster, cheaper, and more efficiently than traditional financial infrastructures.
I have taken a user-centric approach in constructing a GTM playbook for what your products will need to succeed in that future. Here are the three key pillars:
Tokenized Assets – Bringing financial products on-chain while leveraging the full benefits of tokenization
Protocols – Maximizing asset utility and value for owners through innovative mechanisms
Technologies – Building safer, faster, and more efficient global market infrastructure for tokenized finance
In this multi-parts series, I will explain how each component integrates and interacts with each other to create a seamless, user-centric tokenized financial system. In this Weekly Research issue, we’ll take a deep dive into the first pillar—tokenized assets—and explore what are the necessary ingredients to bring out their transformative potential.
Tokenized Assets
Aim Carefully, Don't Miss
At the most basic level, in order for a tokenized asset to be successful, it needs to be useful enough to users so they would want to hold, trade or utilize it onchain. Or putting it another way, it needs to provide greater value than their traditional counterparts. Otherwise it makes no sense for an asset to be tokenized.