Tokenization 2.0: From Isolated Assets to Connected Capital Flows

The financial industry is shifting its focus from tokenizing assets to making them more interconnected.

Traditional finance operates in silos, with different systems for equities, derivatives, and collateral. This fragmentation introduces friction, delays, and additional costs as global markets become increasingly connected.

Blockchain technology offers composability, the ability for different applications and assets to interact within a shared infrastructure. Tokenized equities could integrate with lending, portfolio management, derivatives, and other financial services, improving how capital flows.

The industry is taking shape through distinct approaches, including Ondo Finance's institutional-grade tokenized Treasuries and Kraken's expansion of tokenized equity access. Bitget are exploring how tokenized US equities can integrate with crypto-native trading infrastructure.