Beyond Crypto: The ABCs of Tokenization

Summary

Jane Liu Sullivan explains tokenization of real-world assets, why adoption is accelerating due to practical pilots, lower costs, and supportive regulation, and outlines an ABCD framework to assess which assets benefit most. She describes four potential ways to gain exposure but does not name specific securities or instruments.

• Tokenization creates digital representations of real-world assets on blockchain infrastructure.
• Adoption is accelerating due to real-world pilots, reduced incremental costs, and a more supportive US regulatory backdrop.
• The ABCD framework helps identify suitable assets: Always-on markets, Broad investor demand, Collateral utility, Dynamic cash flows.
• Tokenization improves issuance, settlement, servicing, and collateral management rather than creating instant liquidity.
• Four potential exposure paths: tokenized products, collateral usage, enablers, and blockchain infrastructure.
• No specific tickers, ETFs, or indices are named; the discussion remains at the thematic level.
• The trend is framed as a long-term infrastructure evolution similar to the shift from paper certificates to electronic trading.