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Ondo Executive Compares Tokenization Growth Trajectory to Early ETF Development

(45 days ago) · 1 source · Summarized by CryptoBipto

An executive at Ondo, a company focused on tokenizing real-world assets, has drawn parallels between the current state of asset tokenization and the early days of exchange-traded funds (ETFs). The comparison suggests that tokenization may follow a similar adoption curve as ETFs did when they were first introduced decades ago.

WHY IT MATTERS

Think of tokenization like turning a paper deed for a house into a digital record that can be easily transferred and tracked on a shared computer network called a blockchain. An ETF, or exchange-traded fund, is a financial product that lets you buy a basket of investments — like stocks or bonds — through a single purchase on a stock exchange. ETFs were once a brand-new, unfamiliar concept, but they eventually became one of the most popular ways people invest. The Ondo executive is suggesting that tokenization could follow a similar path — starting small and unfamiliar, then potentially growing as more people and institutions understand and trust it. For anyone new to crypto, this story highlights how some companies are trying to use blockchain technology not just for cryptocurrencies, but to modernize how traditional financial assets like bonds and real estate are bought, sold, and tracked.

Asset tokenization refers to the process of representing ownership of real-world assets — such as bonds, real estate, or commodities — as digital tokens on a blockchain.

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  • theblock.co