Financial Asset Tokenization: The Rise of New Era Exchanges

In the era where cryptocurrency intersects with artificial intelligence, the tokenization of financial assets is becoming a highly regarded emerging trend. This innovation not only breaks the boundaries of traditional finance but also brings unprecedented opportunities to global investors.

Entrance of Giants and Strategic Layout

Robinhood's ambitions

A well-known exchange plans to launch tokenized versions of over 1000 U.S. stocks before the end of the year. This initiative aims to enable round-the-clock trading, lower investment thresholds, and increase participation from global investors. The platform also announced the launch of a Layer 2 blockchain based on Arbitrum, further expanding the Ethereum ecosystem.

However, this innovation has also sparked some controversy. Some argue that these tokenized stocks are not equivalent to real stocks, and what users are actually purchasing are tokenized contracts. This highlights the importance of clear communication with users when promoting new financial products.

Other platforms' layout

Another well-known exchange has chosen to collaborate with Backed to launch xStocks on Solana, providing over 60 tokenized US stocks and ETFs for non-US users. These tokens can be withdrawn to self-custody wallets and are compatible with DeFi protocols.

Other participants, such as a certain exchange, are also actively laying out their plans, launching the first tokenized stock - MicroStrategy, and opening it up to EU users. These products enable 24/5 trading and are fully on-chain, broadening the boundaries of tradable assets while ensuring compliance.

Market Landscape and Historical Lessons

Compared to the "mirror synthetic assets" of the Mirror Protocol in 2020, the current tokenization stock model adopts a more compliant and regulated approach to avoid the risks of repeating past mistakes. With the entry of traditional players and leading companies in the crypto space, the scale of tokenized stocks is expected to far exceed previous levels.

Industry experts predict that by the end of 2025, the market value of tokenized stocks on the chain may exceed $20 billion, and could even reach $50 billion. If certain platforms fully launch their Layer 2 chains and put all stock assets on-chain, just their users and managed funds could exceed $100 billion.

The Transformation of On-Chain Capital

Tokenization of stocks will have a profound impact on global capital markets:

1. 24/7 Trading: No longer restricted by traditional market opening hours.
2. Reduce costs: Lower transaction costs and decrease reliance on intermediaries.
3. Global Accessibility: Provide overseas investors with a more convenient channel for investing in US stocks.
4. Real-time pricing: On-chain markets may have the potential for "pre-pricing".

However, this innovation also brings new challenges. The "24/7 open" structure of on-chain markets may provoke emotional sell-offs in certain situations, and the lack of traditional circuit breakers may lead to increased volatility.

Although the current proportion of tokenization stocks in the overall financial market is still relatively small, its importance will significantly increase with the in-depth layout of various platforms. In the future, it may even prompt traditional securities exchanges to build their own on-chain platforms, offering product forms that better meet regulatory requirements.

Tokenization of stocks is no longer a conceptual product, but is becoming an indispensable part of the real financial system. With the continuous development in this field, we will witness the transformation of on-chain capital markets and the deep integration of traditional finance with blockchain technology. This transformation has just begun, and the future is full of infinite possibilities.