Co-founder of Omni Foundation Austin King believes that tokenization will not reform worldwide finances in the way many expect. After a meeting with more than 40 traditional financial leaders, King came away that although tokenization is inevitable, its adoption will not take place overnight.
Instead, it will gradually progress, starting with assets that are easier to digitize. He expects tokenization will probably follow a structured, led by the lion Pad instead of a fully decentralized model.
‘This will reform the entire industry – but it will not happen as people expect“Said King, the interview of the BlackRock CEO on X.
Stablecoins and Treasury Bills are already token
King argues that one of the biggest misconceptions is that tokenization is still brand new. According to him, more than $ 200 billion in assets have already come to the chain, mainly via stablecoins, which function as tucked Fiat currencies.
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Treasury Bills: the next big token wave?
In addition to Stablecoins, Treasury Bills are another emerging category. King noted that $ 1 billion in treasury accounts is already on the chain. These assets are particularly valuable because of their stability and generating yields. This makes them essential for decentralized financial (Defi) and traditional financial (Trandfi) applications.
‘In Defi, protocols usually require USDC as a margin. In Tradfi, exchanges usually require treasury accounts such as margin“King explained.
Regulation and complexity will form the acceptance
In the meantime, King emphasized that the expansion of tokenization depends on regulation and complexity. Corporate bonds and shares are confronted with strict regulations that will delay things for adoption. In addition, assets with functions such as yields and dividends required advanced blockchain solutions, making tokenization more challenging.
He sees short -term company bonds such as the next major asset class for tokenization because of their predictable yield and standardized issue. With the global bond market worth $ 130 trillion, even a small fraction that is being tokenized can cause enormous growth in Defi.
‘The global bond market is worth $ 130 trillion. If we even token a fraction of it, Defi could experience 1,300x growth“Said King.
BlackRock’s Fink: Tokenization is Finance’s “Next Big Thing”
In the interview shared by King, BlackRock CEO Larry Fink confirmed his conviction that the tokenization of financial assets will again define the world markets. Fink emphasized that tokenization could eliminate inefficiencies in stock and bond schemes, improve security and improve the investment adjustment.
Related: Investors are on hold when Stablecoins circulating delivery increases of more than $ 16 billion in 2025
“We believe that the next step in the future will be the tokenization of financial assets,” Fink said. “Every stock, every bond will have its own Cusip and it will be on one large ledger.” He added that investors would have unique digital identification data, reducing fraud and making immediate settlement of transactions.
Fink, who leads the world’s largest asset manager, sees tokenization as a technological breakthrough that could lower costs and increase transparency in traditional financing.
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