In comments submitted to the SEC’s Crypto Task Force, Citadel emphasized that tokenized assets will only succeed if they meaningfully […]
The post Wall Street Giants Clash Over Future of Asset Tokenization appeared first on Coindoo.
In comments submitted to the SEC’s Crypto Task Force, Citadel emphasized that tokenized assets will only succeed if they meaningfully enhance market operations, rather than offering temporary gains through regulatory arbitrage. While tokenization is often praised for slashing settlement times and reducing costs, Citadel warned it could also fracture market liquidity and restrict access for large institutional players like pension funds and endowments.
Despite those concerns, momentum around tokenization is growing fast. Asset managers like BlackRock and Franklin Templeton have entered the space, joining crypto-native firms such as Coinbase and Kraken. The market for tokenized real-world assets has already topped $25 billion, according to RWA.xyz.
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SEC Chair Paul Atkins remains optimistic, comparing tokenization to the leap from CDs to streaming and even suggesting regulatory carve-outs to spur innovation.
Yet challenges remain for traditional finance. JPMorgan’s recent exploration of Bitcoin-backed loans underscores a broader shift, but experts like Ledn CEO Adam Reeds caution that legacy institutions face serious hurdles—particularly around secure custody, asset volatility, and managing liquidations.
Other voices in the space, like Circuit CEO Harry Donnelly, highlight another persistent issue: permanent asset loss. His company is developing recovery solutions to help bridge the gap between crypto tech and institutional expectations.
The post Wall Street Giants Clash Over Future of Asset Tokenization appeared first on Coindoo.
Source: https://coindoo.com/wall-street-giants-clash-over-future-of-asset-tokenization/
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