Woofun AI notes that Thomas Sy, Head of Multi-Asset Solutions at New York Life Investment Management, identifies "personalized portfolio construction" as the next critical application of tokenization, prioritizing it over settlement efficiency improvements. Sy argues that blockchain is the sole technology capable of scaling complex, customized portfolio strategies for diverse investors, a feat currently hindered by operational complexities in traditional finance.

Sy emphasizes that tokenization allows customization logic to be embedded directly into assets, reducing costs and enhancing efficiency beyond merely placing ETFs or bonds on-chain. With the stablecoin market exceeding $300 billion, he views stablecoins as a vital gateway for traditional finance, driving institutional demand for on-chain yield. NYLIM continues researching DeFi applications, noting that institutional participation requires mature infrastructure, including tokenized collateral and prime brokerage services.