TradFi Already Owns Tokenization, Not Crypto
Crypto has had years to build trust and failed
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Less than a third of Americans know what tokenization is. But once you explain it, half say they want in as long as it's not crypto. Blockchain? Only 15% even care.
The new HarrisX/CTM national survey of 2,008 registered voters lays it out. Tokenization has an awareness problem, not a demand problem.
The technology is invisible to most Americans, and those who are aware of it are put off by its close association with crypto.
The benefits of tokenization are real, but it will be up to traditional financial institutions to build awareness and trust.
What do people actually want?
↳ Lower fees and costs (42%)
↳ 24/7 buying and selling (40%)
↳ Faster settlement, trades clearing in seconds (37%)
↳ Fractional ownership of expensive assets (34%)
↳ Easier transfer between platforms (31%)
What don’t they want? A lecture on the benefits of blockchain.
“Uses blockchain technology” tested dead last as a consumer message. Only 15% saw it as a benefit. 19% didn’t even understand the term.
Nobody outside crypto’s inner circle is buying tokenized assets because of the plumbing.
And for the kill shot, a full 31% of Americans say nothing would make them invest in tokenized assets.
Why? Because crypto has done more damage to tokenization than most realize. The association with crypto speculation is so poisonous that many simply associate tokenization with toxic meme coins like the Trump and Melania coins.
Crypto users, despite being vocal proponents and early adopters of tokenization, can’t carry the market. 85% of crypto owners express interest in tokenized investments, but they represent only 22% of Americans.
The real market is the 78% who have never touched it. They need to hear “faster, cheaper, easier” from mainstream financial institutions, not “blockchain-powered.”
But the part that will make the crypto industry cringe the most is that Americans simply don’t trust it. A mere 28% would trust tokenized assets from crypto and tech-native firms.
Compare this to the 45% of Americans who would trust tokenized assets offered by traditional financial institutions.
This low trust is related to the fact that 40% of Americans have purchased crypto, but only 22% now hold it. 18% of Americans tried it and walked away.
Banks have the credibility advantage and will own tokenization when, not if, they bring it to market. Despite all the hype and promises of fast money, crypto has failed to win people’s trust.
Banks have the trust, the customer base, and the regulatory relationships to make tokenization go mainstream. But even they will have a lot of convincing to do.
A full 27% of Americans trust no provider at all to offer tokenized assets. That is not a technology failure. It is a marketing failure. Tokenization’s only marketing has come from crypto players that most people view as sharks.
78% of Americans say it is important for the U.S. and Europe to coordinate tokenization rules. Consumers are ahead of regulators on this. They already understand that fragmented rules will limit what they can access.
Americans do not want to understand how tokenization or blockchain works. They want to know how it makes buying assets faster, cheaper, and easier for them, and that it is not crypto.
The irony is that crypto markets have touted the benefits of tokenization for years, yet the industry is so closely associated with scams and volatility that they have no first-mover advantage.
Only TradFi can deliver the trust to take tokenization mainstream.
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