Tokenization Becomes Distribution Plumbing
Backed Finance
Direct on-chain funds turn tokenization from a specialized service into distribution plumbing. Once BlackRock and VanEck can sell treasury exposure onchain through Securitize, and Ondo can package similar yield at a 0.15% management fee, the scarce part of the stack is no longer minting tokens, it is owning issuance, trading, compliance, and end investor flow in one system. That is exactly where a standalone wrapper provider gets squeezed.
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Backed is comparatively asset light. It relies on Swiss custody and brokerage partners, then makes money from management fees, issuance and redemption fees, and custom tokenization work. That model is fast to launch across assets, but it leaves less room to cut price than a platform that also controls transfer agency, broker-dealer rails, and the trading venue.
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Securitize shows what vertical integration looks like in practice. It is the tokenization layer for BlackRock's BUIDL and VanEck's VBILL, it operates regulated market infrastructure, and it has expanded transfer agent capabilities. That lets one platform handle fund onboarding, token issuance, servicing, and secondary activity, which naturally pushes the market toward lower take rates.
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The same pressure is showing up outside treasuries. Backed's xStocks product reached meaningful scale through Kraken, then Kraken acquired Backed in January 2026 to internalize issuance, trading, and settlement. The pattern is the same as in funds. Distribution owners want the tokenization layer in house, not rented from an independent vendor forever.
The market is heading toward a barbell. Giant asset managers and exchanges will absorb tokenization into broader platforms, while independent providers will need to win by becoming software and compliance infrastructure for issuers that do not want to build it themselves. For Backed, that makes enterprise tooling and embedded distribution more important than pure issuance fees.