BitGo says asset servicing is the real barrier to tokenized securities
BitGo executive Eugene Hahr argues that the primary hurdle for institutional-scale tokenized securities has shifted from basic custody to complex asset servicing. While holding digital tokens is a solved technical challenge, the industry now faces difficulties in managing the rights, obligations, and corporate actions attached to these assets. Hahr highlights that institutional adoption requires seamless integration of dividends, proxy voting, and daily reconciliation within existing risk and compliance frameworks. He notes that the U.S. and U.K. are approaching this evolution from different directions, with the U.K. focusing on infrastructure via the Digital Securities Sandbox and the U.S. prioritizing trading-led regulatory exemptions. The SEC's September 17 order serves as a critical milestone by allowing onchain venues to operate under conditional exemptions if tokens mirror underlying share rights. Currently, much of the equity tokenization market remains a wrapper for conventional assets, whereas money market funds and private credit have seen more mature production. Ultimately, banks and asset managers are demanding unified operating models that allow them to handle crypto, stablecoins, and tokenized securities without siloed infrastructure. This transition marks a shift toward practical, operational readiness as institutions seek to align onchain assets with traditional financial standards.