“ETFs have been known as weapons of mass destruction,” Hoffman stated, recalling the skepticism that surrounded the construction earlier than it grew to become one of many dominant methods buyers entry markets.
When he joined the ETF business within the early 2000s, the market held roughly $200 billion in property, he stated. In the present day, it is practically a $20-trillion world asset class, in line with a PwC report.
He stated tokenization is following an analogous path, however a lot sooner than ETFs.
“Each market that digitizes will get bigger,” he stated. “And tokenization is admittedly the digitization of capital markets.”
Constructing for an agent-driven future
For Hoffman, tokenization will turn into the muse for what comes subsequent: AI-driven monetary companies.
He stated he envisions a future the place autonomous brokers repeatedly monitor markets and allocate capital by professionally managed portfolios that replace in actual time as situations change.
“Our finish state will likely be portfolios which can be professionally managed, real-time and adjusting to market circumstances and knowledge modifications,” he stated.
To get there, the business first wants tokenized property, 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 broaden into shares, ETFs and perpetual futures by its tokenized market.