Blockchain is changing the world: The new era of stock tokenization

In 2011, an article about how software could change the world sparked widespread discussion. More than a decade later, we are witnessing the rapid development of the internet and the birth of numerous high-value enterprises. Today, artificial intelligence is once again changing the world in new ways, with some arguing that AI is replacing the role of software. However, what truly deserves attention is that, after more than a decade since the emergence of blockchain technology, we are finally witnessing the beginning of "blockchain changing the world," and this starting point is the realization of tokenization in the U.S. stock market.

Although the tokenization of US stocks is not a new phenomenon, the current entrants into this field are no longer limited to cryptocurrency companies, but also include well-known internet enterprises. Recently, a prominent online trading platform announced the launch of stock token trading services based on a certain Blockchain network in Europe, and will tokenize the equity of some unlisted companies, including some highly regarded technology firms. This move has caused a huge response in the financial sector and has also propelled the company's stock price to new highs.

Currently, the total market capitalization of the global cryptocurrency market is approximately $3.4 trillion, while the total market capitalization of the global stock market is about $135 trillion, which is nearly a 40-fold difference. From another perspective, the potential market size for stock tokenization could reach $135 trillion, and as the market cap grows, this upper limit will continue to increase. Although the current market share may be less than 0.1%, once it breaks 3%, it could signify the industry's entry into a true explosive growth phase.

This is precisely the future that emerging trading companies are targeting, and it is also the true growth point of Blockchain technology. If this trend is realized, the impact brought by Blockchain and cryptocurrencies may be no less than the shock of "software changing the world."

The next 1-2 years are expected to be a period of rapid development in this field, with more companies joining the competition, which will also prompt some traditional financial service companies to transform. The door to this trend has already been opened.

However, stock tokenization is not the end of blockchain technology. At the end of last year, a well-known figure in the industry released a proposal regarding the development of digital assets in the United States. He predicted that the global digital capital market is expected to grow from $20 trillion to $280 trillion, while the digital asset market (excluding Bitcoin) could grow from $1 trillion to $59 trillion.

Currently, we are facing three important turning points: the global enthusiasm for stablecoins; the continuous growth of on-chain scale of government bonds and money market funds; and the beginning of stock tokenization. These development trends point to a possible future: all assets being on-chain, achieving true "everything on-chain." Although the realization of this goal still faces many challenges, we are already standing at the starting point of this transformation.

Although it seems unbelievable now, looking back ten years, the prediction that Bitcoin would reach 100,000 dollars was also considered a fantasy. And now, Bitcoin has broken through 110,000 dollars and continues to set new historical highs.

In the foreseeable future, Blockchain is reshaping the presentation of assets and the way value is transferred; at the same time, AI is changing the way information is obtained and bringing about a productivity revolution. Both technologies have gone through more than a decade of incubation, from being ignored to bubble expansion, and then to value reshaping. Perhaps now is the eve of their joint explosion.

So, who will be the next important player to enter the field of stock tokenization? Let's wait and see.