Tokenized Stocks: The $100 Trillion Onchain Shift | Ondo Finance Ian De Bode & Nathan Allman
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What does Wall Street think about all this stuff? Like, are they do they understand what's coming? Are they tokenization bulls? It seems like they're starting to wake up to stablecoins, but do they know what is about to hit them?
I don't think they really do, if I'm being honest.
Welcome to Bankless, where today we explore the frontier of tokenized equities, tokenized stocks. We're doing it. This is Ryan Sean Adams. I'm here with David Hoffman, and we're here to help you become more bankless. Guys, we have Ondo on the podcast. They launched a pretty interesting tokenized securities market on Ethereum, and so we dug into that in today's episode.
The big takeaway I have from this episode is the whole wrapped versus native debate. And I think a lot of listeners, when they think, like, tokenized securities, tokenized stocks, they're thinking like, oh, yeah. We are going to find ways for, like, what I the term I learned, native tokenization to happen on chain, whereas the actual token itself is the security. And I walked away from this episode maybe thinking that that's actually not the case. I think there will be some of that, whether it's the dominant thing, I'm not so sure because no native dollars aren't stable coins. There is no nati
Yeah. I think so. I think the big picture here is just take what happened with stablecoins and extrapolate that to every other real world asset category. So extrapolate that to treasuries, to to bonds, and now to tokenized equities. And you'll recall, David, like, we've had stablecoins in crypto for a long time. We had Yeah. We tried all different models. We tried, you know, collateral backed stablecoins.
Some bad models. Some bad models.
Native ones. The model that scaled, the one we found was the one that USD and and Tether are effectively using, which is, you know, they're collateralized with real world assets on the back. Yeah. Think It's wrapper. A few different yeah. A wrapper model. Few different models being tested and tokenized securities right now, and we don't know which one will take off. But it's gotta be the case that the one is the one that is capital efficient, the one that is most liquid, that will probably tend to do the best. And I think the model today was offered might have some of those attributes. The coo
I've been worried about this for a while and why I'm, like, not haven't yet gotten up out of my seat about tokenized securities because my understanding of securities laws is that if you wanna have a natively issued security on chain, you have to KYC. And if you bake KYC into the compliance of the token logic, you can't have any fun. I can't send you stonks, you can't send me stonks, we can't put stonks into DeFi. And that's the good stuff. Just like being able to use Ethereum to hold them is, like, way less interesting. And I kinda thought that that was going could have could be a dead end. W
Alright. Let's get right to the episode with Ondo Finance. Before we do, we wanna thank the sponsors that made this possible.
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