Former 21Shares co-founder: The tokenization craze has surpassed Wall Street reality, with system integration becoming the biggest obstacle

According to Coindesk, former 21Shares co-founder Ophelia Snyder stated that there is a significant communication misalignment between the crypto industry and traditional finance regarding the issue of tokenization.

Snyder pointed out that current discussions mostly focus on the settlement speed of blockchain and the ability to transfer assets, but overlook the operational processes from trade execution to final settlement. She believes that tokenization projects are feasible in small-scale tests, but face enormous challenges in supporting the massive flow of funds in the U.S. capital markets.

The main difficulties include: how to integrate tokenized assets into existing ledger systems, compliance processes, and regulatory reporting frameworks, as well as how to adjust the risk management framework to accommodate round-the-clock trading. Additionally, many third-party software solutions relied upon by financial institutions have yet to support blockchain-native transactions.

She stated that the real challenges will become apparent when institutions incorporate tokenized infrastructure into their core business pathways. The industry is still in the pilot phase, and there is still a long way to go before large-scale implementation.