The crypto industry's approach to distribution is hindering institutional adoption of tokenization, despite the technology's readiness and competitive yields. While regulatory and custody solutions are in place, the sector's focus on token launches and liquidity incentives fails to align with traditional finance's structured distribution processes. This misalignment prevents institutions from understanding and integrating tokenized products into their existing frameworks.
To achieve meaningful institutional traction, the crypto industry must prioritize education and market introduction over technical development. This involves creating an 'institutional legibility framework' to help non-crypto investment committees evaluate tokenized products within their decision-making processes. By emulating the distribution strategies of ETFs and other financial products, the industry can foster sustained conviction and repeat allocation, ultimately unlocking the full potential of tokenization.
Crypto Industry Must Rethink Distribution for Tokenization Adoption
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