Tokenization mirrors the $20 trillion ETF boom as blockchain and AI converge, Ondo exec says

The marketplace for tokenized assets is increasing quickly, but John Hoffman thinks the biggest question of request hasn't arrived yet: artificial intelligence.

The erstwhile Invesco and Grayscale executive, who precocious joined tokenization steadfast Ondo Finance ONDO$0.3716 arsenic caput of portfolio products, argued the convergence of blockchain infrastructure and AI could go 1 of the biggest forces shaping superior markets implicit the coming decade.

"The aboriginal of markets are onchain," Hoffman said successful a CoinDesk interview. AI agents, helium said, volition yet go progressive participants, buying, selling and allocating superior done tokenized concern products.

Hoffman's thesis ties into 1 of the biggest trends successful some crypto and accepted finance: bringing each kinds of fiscal assets onto blockchain rails. Wall Street banks, plus managers and exchanges are experimenting with tokenized versions of bonds, funds and equities, betting that blockchain-based infrastructure tin marque markets faster and much efficient.

The marketplace for tokenized assets has astir tripled implicit the past twelvemonth to much than $33 billion, according to RWA.xyz. Citi estimates the assemblage could scope $5.5 trillion by 2030, portion a abstracted forecast from Boston Consulting Group and Ripple puts the accidental astatine $18.9 trillion by 2033.

Tokenization follows the ETF boom

Hoffman said helium sees parallels of tokenization with the aboriginal days of exchange-traded funds (ETF).

"ETFs were referred to arsenic weapons of wide destruction," Hoffman said, recalling the skepticism that surrounded the operation earlier it became 1 of the ascendant ways investors entree markets.

When helium joined the ETF manufacture successful the aboriginal 2000s, the marketplace held astir $200 cardinal successful assets, helium said. Today, it's astir a $20-trillion planetary plus class, according to a PwC report.

He said tokenization is pursuing a akin path, but overmuch faster than ETFs.

"Every marketplace that digitizes gets larger," helium said. "And tokenization is truly the digitization of superior markets."

Building for an agent-driven future

For Hoffman, tokenization volition go the instauration for what comes next: AI-driven fiscal services.

He said helium envisions a aboriginal wherever autonomous agents continuously show markets and allocate superior done professionally managed portfolios that update successful existent clip arsenic conditions change.

"Our extremity authorities volition beryllium portfolios that are professionally managed, real-time and adjusting to marketplace circumstances and information changes," helium said.

To get there, the manufacture archetypal needs tokenized assets, onchain prime-brokerage infrastructure and asset-management strategies that tin beryllium executed natively connected blockchain networks.

Ondo is gathering toward that vision, helium said. The steadfast already offers tokenized U.S. Treasury products and plans to grow into stocks, ETFs and perpetual futures done its tokenized marketplace.