Tokenization could take over Wall Street. What is it?

Core Viewpoint - The tokenization of real-world assets is rapidly advancing and is projected to grow significantly, with the market cap for these assets expected to rise from $600 billion this year to approximately $19 trillion by 2033 [4]. Group 1: Tokenization Overview - Tokenization refers to the issuance of stocks on blockchain technology, similar to that used in cryptocurrencies [1]. - Major platforms like Robinhood and Gemini are beginning to offer tokenized stocks in the EU, indicating a shift towards blockchain-based financial products [2]. Group 2: Market Dynamics - The NASDAQ has sought permission from the SEC to offer tokenized securities, aiming to keep pace with competitors like Coinbase and Kraken [3]. - The transition to blockchain is seen as essential for the future of the financial infrastructure, with industry insiders predicting a complete migration of financial markets to this technology [3][7]. Group 3: Benefits of Tokenized Assets - Tokenized equities offer advantages such as easier trading, faster settlement times, and the ability to split assets into smaller pieces, making them more accessible to a broader range of investors [4][5]. - These assets can be accessed globally and utilized as collateral, enhancing liquidity and flexibility in trading [5]. Group 4: Future Outlook and Challenges - The goal is for major companies like Tesla and Amazon to issue their shares on blockchain, streamlining trading processes [6]. - However, challenges remain, including the need to overhaul existing settlement and clearing processes, which currently take several days [7].