* Hedera powers more than 10,000 transactions per second (TPS), proving it can handle heavy demand.
* The milestone is important for builders aiming to tokenize assets at scale.
* Ben Sheppard told CCN that governance, auditability, and institutional integration are as crucial as speed.
* Combining throughput with compliance and trust will shape the future of tokenization.
Hedera powers more than 10,000 transactions per second (TPS), showing it can handle heavy demand. It is more than a speed record.
This milestone is huge not only for speed but also for what builders can now create using Hedera for tokenization.
CCN spoke with Ben Sheppard, an expert in AI and Web3 startups. He explained the value of this and how other factors, such as governance, auditability, and ensuring the network can integrate with institutional processes, are key in this process.
This article explains why both speed and trust matter for the future of tokenization.
What is Hedera Token Service (HTS)?
Hedera Token Service (HTS) allows users to create, mint, and transfer tokens directly on the Hedera network without needing custom smart contracts. This native tokenization model simplifies development and cuts cost overheads.
HTS runs on Hedera’s low-cost, high-speed network and is designed for enterprise use, offering the following:
* Native tokenization: Support for both fungible and non-fungible tokens (NFTs) without Solidity or external smart contracts.
* Low, predictable fees: Transfers cost less than 1¢ USD, with many transactions priced around $0.001 USD.
* Fast settlement: Transactions finalize in 3-5 seconds with low latency, enabling high-frequency enterprise applications.
* Scalability: Efficiently handles large transaction volumes (over 10,000 TPS on mainnet, without congestion-based pricing).
* Compliance-ready controls: Built-in know-your-customer (KYC)/account verification, freeze and pause features, custom fees, and supply management tools.
* Reduced complexity: No need to deploy or audit smart contracts, lowering security risks and operational costs.
The diagram above visually reinforces these benefits, highlighting HTS’s speed, predictable pricing, scalability, compliance features, and independence from smart contracts, making it clear why it fits enterprise tokenization needs.
This strong technical foundation sets up the next question: what does high throughput mean for the economics of tokenization?
How Hedera’s High Throughput Boosts Tokenization Economics
Hedera’s throughput achievement is not only a technical milestone; it also changes what is economically feasible for tokenization. Networks that can process thousands of transactions per second enable previously impossible projects due to cost or latency limits.
Ben Sheppard told CCN that “high-throughput networks like Hedera have the potential to change the economics of tokenization by reducing technical bottlenecks.”
He explained that Ethereum has historically struggled with throughput and costs, while private chains often bring heavy setup and operating expenses.
According to Sheppard, Hedera’s architecture allows for faster and cheaper settlement, which could make tokenizing entire portfolios of assets technically feasible.
This focus on throughput naturally leads to the question of trust: governance and compliance become just as critical.
Beyond Speed: Hedera’s Governance and Institutional Trust Drive Tokenization Momentum
Speed alone does not convince institutions to tokenize their assets. Sheppard emphasized that the main constraints for institutions are not purely technical. They go way further.
“Tokenizing a billion-dollar asset isn’t just about TPS; it’s about governance, auditability, and ensuring the network can integrate with institutional processes,” he said.
He explained that Hedera’s strength lies not only in raw speed but in pairing scale with a governance model designed to reassure enterprises. This combination, Sheppard noted, is crucial for large-scale tokenization.
This focus on institutional trust is paying off.
As of late September 2025, the DTCC has listed the Fidelity and Canary Capital HBAR ETFs on its eligibility register, which is a significant administrative step toward launch. New members such as Arrow Electronics and Blockchain for Energy (B4E) have also joined the Governing Council, further strengthening Hedera’s governance model.
Further reinforcing this trend, the market is currently anticipating the potential approval of a spot HBAR exchange-traded fund (ETF) . This comes after the SEC’s accelerated approval of a new framework for commodity-based Crypto exchange-traded products (ETPs), a step that could mark broader institutional acceptance and clearer regulatory alignment.
This naturally brings the discussion to how governments and regulators view tokenization and why political balance matters.
Regulatory Clarity and Political Balance for Tokenized Assets
Sheppard stressed that the biggest hurdles go beyond technical performance. As a result, it is essential to address how governments view control and oversight.
“There is a need for balance and graduated compliance. I’d add that this balance is also political,” he said.
He pointed out that governments are reluctant to give up control and that public blockchains create a sense of decentralization that can be uncomfortable for regulators.
Private or permissioned chains, Sheppard explained, offer reassurance because oversight can still be exercised through the operating entity.
“Regulatory clarity matters,” he added.
In practice, this means clear rules on governance and accountability, disclosure standards similar to traditional securities law, regulated venues and custodians, and cross-border consistency. Hence, anti-money laundering (AML) and investor protections travel with the instruments.
“If regulators can see that their core levers of trust – governance, disclosure, market infrastructure, and cross-border safeguards – are embedded in tokenisation, they will be far more willing to let the market grow,” Sheppard said.
How Hedera Ensures Data Security, Jurisdiction and Cross-Border Compliance in Tokenization
For many governments, data security is the deciding factor for whether tokenization can be adopted.
Sheppard highlighted that trust for enterprises and governments goes beyond speed and cost. “For enterprises – especially where government data is involved – trust goes beyond speed and cost. Data security and portability are critical,” he said.
He shared that many governments, such as the Philippines, require sensitive data to remain within their jurisdiction.
“The idea of placing sensitive data directly on a public chain triggers an immediate allergic reaction,” Sheppard said.
He suggested that small and medium-sized enterprises (SMEs) and startups may be easier entry points for public blockchain adoption.
He considers governments and enterprises may require an international endorsement, for example, a public chain supported by multilateral institutions or even the United Nations, to provide legal cover for cross-border compliance.
Future Tokenization Standards and Enterprise Adoption
Looking ahead, Sheppard said that the next three years will be shaped less by any single platform and more by the interplay between regulators, enterprises, and global institutions.
“Throughput and governance are necessary, but they’re not sufficient. What really matters is whether a network can align with compliance requirements, provide credible governance, and win institutional trust,” he explained.
He pointed to early signs of momentum in the U.S., noting that “major financial houses such as JPMorgan and Morgan Stanley have reported exposure to spot Bitcoin ETFs in their client portfolios.”
Sheppard said these examples show that digital assets can be included in regulated finance when the framework is clear.
“What endures are the standards and frameworks that regulators and institutions ultimately adopt,” Sheppard concluded.
He believes platforms like Hedera may contribute to shaping those standards, but the real story will be about convergence toward trusted, interoperable approaches that work across jurisdictions.
Conclusion
Hedera’s Token Service demonstrates that tokenization at scale is possible when speed, cost efficiency, and compliance work together. The ability to process more than 10,000 transactions per second makes tokenizing entire asset portfolios technically viable.
Ben Sheppard emphasized that this milestone is only part of the story. Governance, auditability, and regulatory confidence will determine whether enterprises adopt tokenization at scale. Governments need frameworks that protect oversight, enforce disclosure, and provide cross-border safeguards.
The next phase for tokenization will be shaped by cooperation between networks, regulators, and institutions. As standards emerge and institutional trust grows, tokenized assets can move from pilots to fully regulated financial products worldwide.
Read more on CCN – Capital & Celeb News
