21Shares Co-Founder Ophelia Snyder Warns Tokenization Hype Outruns Wall Street Reality

Former 21Shares co-founder Ophelia Snyder argued that crypto and traditional finance are talking past each other when it comes to tokenization, saying "Tokenization solves real problems around settlement rails and moving assets" while the broader operational requirements remain unprepared.

“21Shares co-founder warns tokenization hype is outrunning Wall Street reality Tokenization can improve settlement and asset movement, but key pieces of financial infrastructure remain unprepared for institutional-scale adoption”

@coindesk

Snyder said blockchain firms have largely addressed transaction throughput but not the operational processes that occur after a trade is executed and before assets are fully settled, including how tokenized assets fit into books and records systems, compliance workflows and regulatory reporting.

@coindesk

She warned that financial institutions must rethink risk management frameworks if tokenized assets can trade around the clock, and that many firms rely on third-party software providers that have not yet adapted their systems for blockchain-native transactions.

Snyder framed the industry's biggest challenge as scale rather than functionality, adding "A billion dollars is nothing when it comes to traditional financial flows" as she described the oversight and controls needed to move large amounts of digital bearer assets on behalf of clients.

CoinDesk reported that in May, combined exchange volumes fell 3.45% to $4.41T, the lowest since September 2024, even as RWA perpetual futures volumes rose 10.4% against the trend to a new all-time high.

Cryptoast reported that VanEck CEO Jan Van Eck told Fox Business that Ether (ETH) is the "Wall Street token," arguing that stablecoins require a base blockchain and that Ethereum is the standout option.

Van Eck’s view, as quoted in Cryptoast, was that with stablecoins "every bank and every financial services company must have a way to accept stablecoins," which he said points to Ethereum or "something that uses Ethereum’s methodology."

Cryptoast

Cryptoast linked institutional adoption in the United States to ETFs and described ongoing steps involving stablecoins, while noting that VanEck offers a spot ETH ETF.

The article also cited a market backdrop in which Ether reached an all-time high four days before the report, stopping just under $5,000, and said it has risen 88% over the last 12 months.

Cryptoast further reported that Standard Chartered stated that ETH could reach $7,500 by the end of 2025, placing VanEck’s Ethereum thesis alongside a more optimistic price outlook.

CoinDesk said Snyder expects the industry's toughest challenges to emerge as institutions move beyond pilot programs, with the next phase involving testing whether tokenized infrastructure can operate in the critical path of major financial firms.

“Is Ether (ETH) the winner of the current rush into cryptocurrencies”

Cryptoast

Snyder told CoinDesk that the timeline depends largely on how aggressively institutions pursue adoption, and that if current momentum continues she expects more meaningful implementation efforts over the next several years.

CoinDesk also emphasized that a tokenization project can work at a limited scale and still struggle to support the volume of U.S. capital markets, underscoring why operational readiness matters for institutional-scale settlement.

Meanwhile, Cryptoast framed the near-term adoption pressure around stablecoins, saying companies must adopt technologies to enable the use of stablecoins within the next 12 months.

With CoinDesk reporting that in May combined exchange volumes fell 3.45% to $4.41T while RWA perpetual futures volumes rose 10.4% to a new all-time high, the sources set up a contrast between broader market volume softness and continued momentum in RWA perpetual futures.