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Ondo Finance: Tokenization has surpassed ETFs in popularity, with assets reaching US$3.48 billion

2026-08-23 12:14:14
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Tokenization in the crypto market is experiencing rapid growth, and its adoption rate has surpassed previous milestones in the cryptocurrency space.

According to John Hoffman, head of a financial product portfolio, the current suspicion and hesitation in the tokenization field are exactly the same as in the early stages of exchange-traded funds (ETFs). Once the potential of ETFs was recognized, it revolutionized the investment industry.

Timeline for accelerating tokenization

Hoffman compares the rise of tokenized assets with early milestones in the cryptocurrency space. He pointed out that the time it took for various types of assets to reach a billion-dollar market value varied: it took three years for stablecoins, 18 months for tokenized treasury bonds, and tokenized stocks reached this threshold in six months, while certain types of tokenized stocks achieved the goal in eight months. These data show that market acceptance of tokenization solutions is accelerating.

Specifically: It takes three years for stablecoins to reach US$1 billion in assets, eighteen months for tokenized treasury bonds, six months for tokenized stocks, and only eight months for certain types of tokenized stocks. Hoffman believes that this rapid progress demonstrates the effectiveness of finding a strong fit between products and markets, just as ETFs have moved towards widespread adoption. He linked the shift to a broader adoption cycle that involves regulation, supporting intermediaries, real-world cases of portfolio construction, and ultimately broad investor participation.

Institutional and Infrastructure Opportunities

Institutions and large investors will benefit from this growth and make better use of the global system for trading, collateral management and settlement through stablecoins. For exchanges, custodians and developers, tokenization provides a way to combine existing infrastructure with digital solutions, such as tokenized stocks and treasury bonds.

Tokenization is now ushering in its "ETF moment," with enthusiasm growing as technology drives new market structures and cross-border investment opportunities. This trend coincides with the growing focus on physical, real-world assets. Several platforms are tracking this category and highlighting initiatives promoted by blockchains, including Ethereum, Stellar Chain and Polygon Chain, which aim to attract new issuers and adjust securities regulatory frameworks.

Regulatory environment and future possibilities

Hoffman pointed out that regulatory clarity on tokenized assets in the United States is gradually increasing. This development is seen as a complement to the existing distributed ledger technology securities framework in the EU and the UK. Such developments are expected to further promote adoption and innovation.

Other drivers include new broker licenses, secondary market liquidity opportunities, cross-blockchain standardization, and stronger reserve verification practices. A successful wave of tokenization could bring the ETF model into a programmable, all-weather market while maintaining regulation, compatibility and high liquidity.

Overall, as regulatory efforts and technological infrastructure advance, participants expect tokenization to reshape market structures, expand access, and spawn new financial products.

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