Wall Street, crypto industry say tokenization will reshape global markets: 'It’s going to eat the entire financial system'

Core Viewpoint - The movement towards tokenized stocks, which are digital versions of traditional shares recorded on a blockchain, is gaining momentum, with major players in the crypto industry and Wall Street aiming to integrate these into mainstream trading [1][2]. Group 1: Regulatory Developments - Nasdaq has requested regulatory approval from the SEC to allow tokenized stocks to trade on its exchange, with a decision expected within 45 to 90 days [2]. - The SEC's opening of the proposal for public comments indicates a significant step towards merging traditional finance with blockchain technology [2]. Group 2: Industry Adoption - Robinhood has launched over 200 US stock and ETF tokens in Europe, although similar products have not yet been introduced in the US [3][5]. - Major financial institutions like Goldman Sachs and BlackRock are already offering tokenized money-market funds, with BlackRock exploring tokenized ETFs [4][5]. Group 3: Market Potential - BlackRock's CEO stated that tokenization could revolutionize investing by allowing every asset to be tokenized, leading to instantaneous transactions instead of those taking days [5]. - The market for tokenized real-world assets is projected to grow from approximately $600 billion in 2025 to nearly $19 trillion by 2033, according to Boston Consulting Group and Ripple [6]. Group 4: Challenges and Concerns - Tokenized stocks tracking popular companies like Apple and Amazon in Europe have faced issues with low liquidity, causing price discrepancies with actual stocks [7]. - Concerns regarding third-party issuers have also emerged, highlighting potential risks in the tokenized asset market [7].