Svmuu News: Ophelia Snyder, co-founder of 21Shares, stated that although tokenization can address practical issues such as settlement efficiency and asset liquidity, there remains a significant gap in understanding 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, broker-dealers, and asset management firms, noting that market discussions often overlook the operational processes between trade execution and final settlement. Although the blockchain industry has made progress in terms of transaction throughput, it still falls short of meeting the needs of traditional financial institutions in areas such as ledger recording, compliance processes, regulatory reporting, and round-the-clock trade risk management.
Ophelia Snyder also noted that the third-party software vendors relied upon by most financial institutions have not yet completed system adaptations for native blockchain transactions. She believes that the biggest bottleneck facing the industry at present lies in scaling adoption, rather than the functionality itself. (CoinDesk)