Ondo Finance Explains the ETF-like Growth Process of Tokenization

John Hoffman, Head of Product Portfolios at Ondo Finance, stated that tokenization is going through a phase similar to the early days of exchange-traded funds (ETFs) in the crypto market. Hoffman expressed that an appropriate product structure, regulatory framework, and market infrastructure could accelerate adoption. When comparing growth timelines, while stablecoins took about three years to reach a billion-dollar asset size, tokenized U.S. Treasury bonds reached this threshold in 18 months, tokenized stocks in six months, and Ondo Stocks in eight months. Hoffman emphasized that ETFs have become one of the fundamental building blocks of the market over time, and a similar transformation can be seen in tokenized assets. He also noted that clear rules, broker support, and understandable examples are necessary for tokenization. Exchanges and custodians are focusing on integrating their existing infrastructure with tokenized stocks and bonds. Developments are being evaluated alongside the growth in the category of real-world assets. Hoffman indicated that broker licenses, strengthening secondary market liquidity, and reserve verification could support growth. A successful tokenization process is expected to enable the ETF model to advance to a further stage.