The tokenization of real-world assets (RWAs) could transform the access of everyday investors to private markets, similar to how ETFs changed access to stocks in the 1990s.
Tokenization and Market Access
Christopher Perkins, president of CoinFund, believes that tokenized assets could unlock private markets for non-accredited investors. This development would allow investment in a traditionally inaccessible sector.
In the U.S., roughly 80% of companies generating $100 million or more annually remain private, which limits retail investors' opportunities. Tokenization could change this by offering transparent, fractional access to those assets.
Prospects of Tokenized Assets
While tokenized equities are still in the early stages, they could reshape capital formation and liquidity models. This creates new tools for DeFi, collateral, and fundraising.
As public markets shrink and IPOs become scarce, demand for alternative access to assets is on the rise.
Market and New Opportunities
Major trading platforms are beginning to explore this market. For instance, Robinhood recently launched tokenized equity trading in Europe, providing synthetic exposure to firms like SpaceX and OpenAI. These tokens do not carry ownership rights but mirror the price movements of the underlying companies.
Despite the lack of official endorsement from the companies they track, interest in these assets is growing among both platforms and investors.
The tokenization of real-world assets could change the nature of investing, providing everyday investors access to previously closed and promising markets.
