Many transformative technologies expand before the rules around them are fully understood. Platforms like Facebook and Uber scaled globally long before governments could define clear frameworks for data use, labor classification, or accountability.
Regulation followed growth, often trying to adapt to systems that were never built with oversight in mind.
Digital finance is now entering a similar phase. Over the past few years, tokenization has been widely promoted as a way to bring real-world assets on-chain.
Assets that were once difficult to divide, transfer, or manage can now be digitized and traded more efficiently. But as adoption grows, a deeper question is emerging: can the infrastructure supporting these assets handle real financial complexity?
Early tokenization efforts often focused on proving that assets could be represented on-chain. Many projects were built as minimum viable products, prioritizing speed and demonstration over long-term functionality.
This approach has exposed a recurring issue. Core processes like compliance, settlement, and ownership verification are frequently layered on top of systems rather than built into them.
Why settlement and compliance are becoming central
The limitations of this “build first” approach have not gone unnoticed. Piero Cipollone of the European Central Bank recently emphasized that tokenization alone does not remove inefficiencies from financial markets.
Without reliable settlement mechanisms, he noted, risks remain and scalability becomes difficult.
Investors are increasingly aligning with this view. Instead of focusing solely on asset access, they are examining how ownership is recorded, how transfers are finalized, and whether systems can support assets across their full lifecycle.
When these elements are treated as secondary, tokenization risks becoming an incomplete solution rather than a transformative one. This shift in perspective is influencing how new infrastructure is being designed.
Mavryk Network is one example of a platform taking a more integrated approach. Built as a Layer 1 blockchain, it is designed to support issuance, trading, custody, and settlement within a single system. Its model embeds compliance directly into token standards, rather than relying on external checks afterward.
For institutional-grade assets, this distinction is critical. By encoding rules such as KYC requirements into the asset itself, tokenized instruments can move within approved environments while maintaining regulatory alignment.
As the tokenization market becomes more competitive, the focus is shifting from experimentation to durability. The platforms that succeed are likely to be those that treat infrastructure as a core feature rather than an afterthought.
Dan Burgin
U.Today Editorial Team
