Hedera has achieved a remarkable milestone, demonstrating its capacity to process over 10,000 transactions per second (TPS). This feat is not merely about speed; it unlocks new possibilities for developers focused on tokenizing assets on a grand scale. The implications are significant for a variety of enterprises looking to leverage Hedera’s technology to streamline their operations.
In an interview with CCN, Ben Sheppard, an expert in AI and Web3 startups, highlighted that while speed is impressive, governance, auditability, and seamless integration into existing institutional frameworks are equally vital. The combination of scalability with features that emphasize compliance and trust forms the backbone of future tokenization strategies.
Hedera’s Token Service (HTS) plays a vital role in this context. It allows users to create, mint, and transfer tokens directly on the Hedera network without the necessity of custom smart contracts. This simplifies the development process and significantly reduces overhead costs. The HTS runs on a low-cost, high-speed network specifically designed for enterprise applications, providing:
- Native tokenization for both fungible and non-fungible tokens without the need for Solidity or external smart contracts.
- Predictable fees, where transfers typically cost less than one cent, with many transactions priced around $0.001.
- Fast settlement times, finalizing transactions in 3–5 seconds with low latency.
- Scalability, effectively managing large transaction volumes, exceeding 10,000 TPS on the mainnet.
- Compliance-ready controls, including built-in KYC/account verification and tools for freeze, pause, and supply management.
This technical prowess enables enterprises to explore tokenization opportunities previously hindered by cost and latency. Sheppard noted that traditional networks like Ethereum have historically faced difficulties with throughput and high costs, while private chains often impose substantial setup and operating expenses. Hedera’s architecture allows for swifter, cheaper settlement processes, making extensive asset tokenization feasible.
However, the conversation extends beyond mere technical performance. For institutions, governance and trust are paramount. Sheppard emphasized that tokenizing high-value assets is not just about transactions per second; it also involves establishing robust governance, ensuring auditability, and facilitating integration with institutional protocols. This nuanced approach positions Hedera advantageously for large-scale tokenization efforts.
As of late September 2025, noteworthy advancements have occurred in terms of institutional engagement. The Depository Trust & Clearing Corporation (DTCC) has included the Fidelity and Canary Capital HBAR ETFs on its eligibility register, indicating significant progress towards their launch. Additionally, companies such as Arrow Electronics and Blockchain for Energy (B4E) have joined Hedera’s Governing Council, reinforcing its governance structure as it attracts institutional interest. Current market trends underscore a potential approval for a spot HBAR exchange-traded fund (ETF), especially following the SEC’s expedited endorsement of a new framework for crypto exchange-traded products, signaling a shift toward broader institutional acceptance.
The regulatory landscape remains a crucial consideration as discussions around tokenization evolve. Sheppard pointed out that regulatory clarity is pivotal. He advocates for a balance in governance and compliance, which would potentially lead to a more favorable view among regulators. He noted that many governments prefer maintaining oversight, which public blockchains may complicate due to their decentralized nature. Conversely, private or permissioned chains can offer necessary reassurances.
Furthermore, data security has emerged as a significant factor influencing the adoption of tokenization by governments. According to Sheppard, entities handling sensitive data must ensure it remains within legal jurisdictions to avoid compliance issues. This concern suggests that small and medium-sized enterprises may serve as more accessible entry points for the adoption of public blockchain technologies.
Looking to the future, Sheppard anticipates that the next few years will see an evolving landscape shaped by the interactions between regulators, enterprises, and global institutions. While throughput and governance are essential, aligning with compliance requirements and securing institutional trust will ultimately dictate the success of tokenization efforts.
Recent signs of momentum in the U.S. market, highlighted by major financial institutions like JPMorgan and Morgan Stanley including exposures to spot Bitcoin ETFs in client portfolios, suggest a growing acceptance of digital assets within regulated frameworks.
In conclusion, Hedera’s Token Service demonstrates the viability of tokenization at scale, combining speed, cost efficiency, and compliance. Ben Sheppard argues that this milestone should be viewed within a broader context of governance and regulatory frameworks, which will dictate the extent to which enterprises embrace tokenization. Moving forward, cooperation between networks, regulatory bodies, and financial institutions will be crucial in establishing standards that enable the seamless integration of tokenized assets into the global financial ecosystem.
