Grayscale's Sebastian Pulido Discusses Legal and Valuation Needs for Tokenized Assets

In a recent discussion, Sebastian Pulido, Managing Director and Head of Onchain Asset Management at Grayscale Investments, highlighted the essential requirements for tokenized assets to attract investors as on-chain markets continue to expand. He stated that strong legal protections, dependable valuations, and underlying credit quality are crucial for the success of tokenization across various asset classes.

Pulido warned that simply placing illiquid assets on-chain does not automatically generate liquidity, particularly in lending markets. He pointed out that tokenized equities and perpetual futures serve as complementary methods for accessing similar exposures, with tokenized shares providing a long-term alternative that avoids the costs associated with perpetual futures funding payments.

Tokenized equities are increasingly being utilized as collateral for loans and perpetual futures positions. However, Pulido noted challenges such as the continuous trading of tokens against underlying assets that have fixed trading hours, as well as discrepancies in redemption schedules and fragmented liquidity across different chains and venues.

Currently, institutions are more comfortable holding tokenized funds rather than deploying them in decentralized finance (DeFi), though Pulido anticipates this will shift as they become more familiar with the protocols and asset movements. Looking ahead to 2040, he predicts a significant increase in assets issued natively on-chain, with brokerage wrappers providing alternative access and credit being monitored through more transparent data than periodic reports.