Tokenization Will Improve, Not Disrupt, Banking Infrastructure, Wall Street Executives Say

Tokenization records rights to assets such as stocks and bonds on a blockchain, potentially shortening settlement times and making transfers more efficient. For banks, brokerages and asset managers, however, the real hurdles lie in post-trade recordkeeping, regulatory reporting and integration with existing software. Former 21Shares co-founder Ophelia Snyder therefore believes market enthusiasm has outpaced Wall Street's operational capabilities.

Speaking on CoinDesk's Public Keys on June 22, 2026, Snyder said blockchain companies had largely solved transaction-throughput constraints, but financial institutions still needed to manage the risks of round-the-clock trading and upgrade third-party systems. She stressed that even a pilot capable of transferring $1 billion would be small within U.S. capital markets. The next stage must show whether the technology can enter the core workflows of large financial institutions.

Asset tokenization uses distributed ledgers to record ownership of assets such as bonds and money market funds, with smart contracts automating transactions. The technology can shorten settlement times, improve collateral and liquidity management, and potentially broaden cross-border investment. But it must still integrate with existing market infrastructure, legal frameworks and investor protections, all of which have implications for financial stability.

Federal Reserve Governor Lisa Cook told a digital-assets conference hosted by the Central Bank of West African States, or BCEAO, in Dakar, Senegal, on May 8, 2026, that the value of tokenized assets in the United States had more than doubled within a year to about $25 billion. She said tokenization would not replace traditional finance but could make it more efficient. The Fed will monitor the risks of runs stemming from 24-hour trading, interconnected systems and cyberattacks.