Guy Wuollet, a general partner at a16z crypto, stated that tokenization can make funds more efficient and easier to access globally. The crypto industry has long believed that "if you build it, they will come," but now on-chain finance is actively bringing products to users.

He previously pointed out the killer use case of tokenization as collateral liquidity, believing that synthetic products can sometimes be more attractive than tokenized spot assets when pursuing maximum global distribution. He also emphasized that what Wall Street refers to as digital asset transformation truly inherits the composability of crypto: once assets are on shared programmable infrastructure, settlements become faster, reconciliations are reduced, and products can be directly assembled without having to rebuild the backend each time.

He advocates for credit to be initiated natively on-chain, rather than first lending off-chain and then packaging it into tokens. Loan service costs often account for 1% to 3% of the outstanding balance, and on-chain initiation can eliminate backend costs and enhance composability. Regarding on-chain emerging market stocks, he values the accessibility of the products themselves, rather than just the mirror channels for U.S. assets.

His empirical focus includes tokenized funds, stablecoins, on-chain government bonds, and RWA perpetual contracts. On-chain RWA perpetual annualized trading once reached a scale of $1.4 trillion, accounting for half of the trading volume on some perpetual exchanges. Traditional markets are constrained by listing committees and geographical segmentation, while blockchain simultaneously removes issuance permissions and distribution boundaries.

a16z crypto continues to bet on infrastructure and application layers, establishing the investment standard of "the origin is on-chain, not a copy on-chain." The efficiency of fund tokenization comes from distributing without intermediaries, automating share registration, and putting compliance terms on-chain, rather than just changing the packaging.

In terms of market mechanisms, buyers are users who cannot open U.S. brokerage accounts but can hold stablecoin wallets, as well as institutions that want to use shares as collateral for turnover; sellers are traditional fund stacks that still rely on transfer agents, custodians, and sales channels for fees. This is driven by distribution rather than mere speculation, with funds flowing from geographically fragmented fund shares to on-chain shares that can be transferred 24/7 and composited into lending and perpetual contracts. Beneficiaries include issuers and trading venues, stablecoin clearing, and compliance tokenization service providers, while those under pressure are intermediaries that rely on geographical licenses and manual reconciliations for income.

Source: Public Information