Ophelia Snyder, former co-founder of 21Shares, argues that while tokenization solves real problems in settlement and asset movement, the broader financial infrastructure is not ready for institutional-scale adoption. She points out that crypto and traditional finance are often talking past each other, with blockchain firms focusing on transaction throughput while ignoring operational processes like books and records, compliance, and regulatory reporting. Financial institutions also need to rethink risk management for round-the-clock trading. Snyder believes scale, not functionality, is the biggest challenge — a billion dollars is negligible in traditional capital markets. She outlines two paths forward: developing new software or adapting existing systems, both requiring long timelines as many institutions are still completing cloud migration. She expects real challenges to emerge as pilot programs move to production, with meaningful implementation likely taking several more years.

Key facts

• Tokenization solves settlement and asset movement but faces operational integration issues.
• Financial institutions lack blockchain-ready systems for compliance and risk management.
• Scale is the biggest hurdle; a billion dollars is small in traditional capital markets.
• Two paths: new software or adapting existing systems, both requiring long timelines.
• Real challenges emerge as pilots move to production, taking several more years.