Tokenization is still in its early stages, with experts emphasizing the need to align the hype with real-world applications. Graham Ferguson from Securitize highlighted the importance of working closely with regulators while issuing regulated securities on blockchains. Meanwhile, Min Lin of Ondo pointed out the staggering value of markets like U.S. Treasuries, which sits at $29 trillion, indicating substantial demand for tokenized assets. However, Ferguson cautioned against rushing into regulatory matters, noting that the SEC is beginning to recognize tokenization’s potential for future market infrastructure. Both Securitize and Ondo offer different models for tokenization. Securitize focuses on compliance by issuing securities directly on-chain while ensuring that regulatory requirements are met. This method, while compliant, poses challenges in tracking asset ownership within decentralized finance (DeFi) protocols. On the other hand, Ondo employs a wrapper model that allows for quicker tokenization of assets, such as tokenized equities that can be used as collateral. This model enables Ondo to scale rapidly, already tokenizing over 200 stocks and ETFs. Ondo differentiates between permissioned and permissionless tokenization. For instance, their Short-Term U.S. Treasuries Fund is permissioned, restricting transfers to whitelisted addresses, while their tokenized stocks become permissionless after a compliance period, allowing wider access. This flexibility positions Ondo to leverage DeFi protocols more effectively, facilitating peer-to-peer transactions. The wrapper approach has proven efficient, enabling Ondo to tokenize certain stocks in mere minutes after they hit public markets.