Tokenization mirrors the $20 trillion ETF boom as blockchain and AI converge, Ondo exec says
Ondo's new portfolio chief says tokenization is following the ETF playbook, and AI agents will drive the next wave of demand for onchain assets.
Intelligence analysis by GPT-5.4 Mini
Ondo executive John Hoffman says tokenization is still early, but could grow into a major capital-markets layer as blockchain and AI converge. He compares its path to the ETF industry, arguing that digital assets and autonomous agents will push finance onchain.
A company leader says money and investments may soon work more like digital game cards that computers can move around quickly. He thinks smart robot helpers will one day trade these digital cards by themselves, the way apps already help people manage money.
Analysis
The core thesis
Ondo Finance's new head of portfolio products, John Hoffman, says tokenization is at the same stage ETFs were in the early 2000s: unpopular, misunderstood, and still far from mainstream. His argument is that tokenization is not just a new wrapper for assets, but a way to move capital markets onto blockchain rails.
Why AI matters here
Hoffman said the biggest next wave of demand may come from artificial intelligence. In his view, AI agents will eventually buy, sell, and allocate capital on their own, which means they will need tokenized assets, onchain trading infrastructure, and portfolio tools that can operate without manual intervention.
Market size and comparisons
The article says the tokenized asset market has grown to more than $33 billion, nearly tripling over the past year, according to RWA.xyz. It also cites forecasts that the sector could reach $5.5 trillion by 2030, and as much as $18.9 trillion by 2033 in another estimate. Hoffman uses the ETF industry as the historical analogy, noting that ETFs grew from about $200 billion in assets when he entered the business to nearly $20 trillion today, according to a PwC report.
What Ondo is building
Hoffman said Ondo already offers tokenized U.S. Treasury products and plans to expand into stocks, ETFs, and perpetual futures through its tokenized marketplace. The company’s stated goal is to become a platform for managed onchain investment portfolios that can update in real time as market conditions change.
The article's bottom line is straightforward: tokenization is being presented not as a side trend, but as the substrate for a more automated and more digital financial system.
Key points
- Ondo's John Hoffman compared tokenization's early stage to the ETF industry before it became mainstream.
- He said AI agents will eventually need tokenized assets and onchain infrastructure to operate autonomously.
- The article says the tokenized asset market has topped $33 billion and has nearly tripled over the past year.
- Hoffman cited forecasts that the sector could reach trillions of dollars over the next decade.
- Ondo is already selling tokenized U.S. Treasury products and plans to add stocks, ETFs, and perpetual futures.
If tokenization keeps growing, it could make more kinds of assets easier to trade and manage on blockchain networks. Ondo's plan to expand beyond Treasury products into stocks, ETFs, and futures could help make onchain portfolios more useful for a wider set of investors.
The article's forecasts depend on tokenization reaching far beyond its current $33 billion scale, which is still small compared with the market sizes being cited. If onchain trading tools, regulation, or AI-driven investing develop more slowly than expected, the demand Hoffman describes could take much longer to arrive.
