Axelar's Georgios Vlachos: Interoperability Standards Key To Scaling Institutional Tokenization Across Blockchains (UPDATED)

As Web3 interoperability becomes foundational for blockchain-based finance, critical gaps in infrastructure are slowing institutional adoption, according to Axelar co-founder Georgios Vlachos.

"We’re likely just at the beginning of an explosion of blockchain-based solutions for tokenized finance," Vlachos told Benzinga. "It’s important we now consider how to make interoperability networks secure, open, and accessible to all, just like TCP/IP is for networks on the internet itself."

He says that without decentralized, open-source, and permissionless protocols, blockchain’s benefits, such as transparency and efficiency, could be undermined. This limits institutional use cases like tokenized funds and stablecoins.

Vlachos highlighted the need for standardized tooling to prevent fragmentation in tokenization.

"Issuers need tooling and standards that ensure their tokens will be consistent across multiple blockchain environments," he said, citing Axelar's Interchain Token Service (ITS) as an example that automates token feature translation and supply management across chains.

On security, he stressed that interoperability protocols must remain fully decentralized to connect private and public blockchains while meeting global regulatory demands.

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The remarks come as Deutsche Bank, Axelar and Memento Blockchain released a litepaper for project DAMA 2, a tokenization platform designed to bridge traditional finance and blockchain.

The platform, recognized in Global Custodian's 2025 Leaders in Custody Asia awards for "Innovation in Smart Contract Technology," uses a Blockchain-as-a-Service model to enable compliant asset issuance with minimal upfront investment.

It features a privacy-enabled Ethereum ETH/USD Layer 2 built by Memento blockchain DEXTF/USD using zkSync's ZK Chain technology and Axelar's network for multichain token distribution.

"DAMA 2 represents how public chains have evolved for institutional finance's use," said Boon-Hiong Chan, Innovation Lead at Deutsche Bank.

The platform targets a growing digital-native demographic, with $84 trillion in global wealth expected to shift by 2045, according to Cerulli Associates.

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