Opinion: The next stage of tokenization will be "personalized portfolios," not just improving settlement efficiency.

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BlockBeats news, July 5 - Thomas Sy, head of multi-asset solutions at New York Life Investment Management (NYLIM), stated that the next core application of tokenization will be to achieve "personalized portfolio construction," rather than just improving settlement efficiency or extending trading hours.

NYLIM manages approximately $807 billion in assets, of which about $11 billion is managed by Sy's team. He pointed out that blockchain technology may enable asset management institutions to customize complex portfolio strategies for different investors on a large scale, a capability that is currently difficult to achieve within the traditional financial system.

Sy said that the core of future asset management will shift towards "highly customized" solutions, and blockchain is the only technological path that can achieve this goal at scale. He believes that tokenization is not just about putting ETFs, bonds, or private credit on-chain, but more importantly, it involves reconstructing the very way portfolios are built.

He also noted that current asset portfolios typically involve a mix of ETFs, bonds, and private assets, but due to operational complexity, personalized strategies are difficult to scale. Tokenization could embed "customization logic into the assets themselves," reducing operational costs and improving efficiency.

In addition, Sy stated that stablecoins have become a key entry point for traditional finance into the on-chain world. Currently, the stablecoin market size has exceeded $300 billion and is being used for cross-border payments and capital management. He believes this trend will gradually drive institutional demand for on-chain yield-bearing assets.

In terms of decentralized finance (DeFi), NYLIM is still researching related applications, but Sy emphasized that institutional-grade participation still requires more mature infrastructure, including tokenized collateral, clearing mechanisms, and the improvement of prime brokerage service systems.

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