“ETFs had been known as weapons of mass destruction,” Hoffman stated, recalling the skepticism that surrounded the construction earlier than it turned one of many dominant methods buyers entry markets.
When he joined the ETF trade within the early 2000s, the market held roughly $200 billion in belongings, he stated. Right this moment, it is practically a $20-trillion international asset class, in accordance with a PwC report.
He stated tokenization is following an analogous path, however a lot quicker than ETFs.
“Each market that digitizes will get bigger,” he stated. “And tokenization is absolutely the digitization of capital markets.”
Constructing for an agent-driven future
For Hoffman, tokenization will grow to be the inspiration for what comes subsequent: AI-driven monetary companies.
He stated he envisions a future the place autonomous brokers constantly monitor markets and allocate capital by means of professionally managed portfolios that replace in actual time as situations change.
“Our finish state shall be portfolios which might be professionally managed, real-time and adjusting to market circumstances and information modifications,” he stated.
To get there, the trade first wants tokenized belongings, onchain prime-brokerage infrastructure and asset-management methods that may be executed natively on blockchain networks.
Ondo is constructing towards that imaginative and prescient, he stated. The agency already presents tokenized U.S. Treasury merchandise and plans to develop into shares, ETFs and perpetual futures by means of its tokenized market.
