Tokenization solves real problems but institutions aren't ready, says 21Shares co-founder

Ophelia Snyder, co-founder of 21Shares, said that while tokenization solves real-world problems related to payment systems and asset movement, core financial infrastructure is not yet prepared for institutional-scale adoption. According to CoinDesk, she argued that although blockchain companies have largely addressed transaction throughput issues, they have not met the broader operational requirements of financial institutions. Snyder explained that the 24-hour trading of tokenized assets would require financial institutions to rethink their risk management frameworks. She also pointed out that many firms rely on third-party software providers whose systems are not adapted for blockchain-based transactions. Snyder believes that while these projects can work on a limited scale, they may struggle to handle the volume of U.S. capital markets, where she noted $1 billion is a trivial sum. She anticipates that the industry's biggest challenges will emerge as institutions move beyond pilot programs to full-scale business operations.