Tokenization Is Finance’s Next ETF Moment, And Wall Street Isn’t Ready

Group 1: Evolution of Investment Vehicles - The first exchange traded fund (ETF) was launched in 1993, and despite initial skepticism, ETFs have now reshaped global investment, with 15,000 ETFs holding over $17 trillion in assets [1] - The tokenization of real-world assets (RWA) on blockchain is currently underway, allowing traditional financial instruments to be represented digitally, making them programmable and easily transferable [2] Group 2: Company Initiatives - Janus Henderson partnered with Centrifuge to launch a liquid Treasury fund on-chain, which quickly grew to over $400 million in assets under management, demonstrating investor interest in on-chain solutions [3] - The flagship JAAA strategy from Janus Henderson has scaled to $750 million, indicating successful capital flow through new blockchain infrastructure [3] Group 3: Industry Skepticism and Adoption - Skepticism remains prevalent in traditional finance regarding tokenization, focusing on regulation and legacy systems, similar to the doubts faced by ETFs in the past [4] - Adoption of new financial innovations often occurs in a non-linear fashion, with significant changes happening suddenly after a period of gradual acceptance [4] Group 4: Advantages of Tokenization - Tokenization represents a foundational shift in finance, addressing inefficiencies such as lengthy settlement times and high costs associated with intermediaries [5] - By moving assets on-chain, tokenization offers instantaneous settlement, enhanced transparency, and integration into decentralized finance, potentially transforming financial models [5]