Tokenisation of Equities Set to Unlock Trillions as Nasdaq, Coinbase Make Moves
The world of finance is on the brink of a significant shift, with tokenisation of equities poised to unlock trillions in value. Nasdaq and Coinbase have made moves to list tokenised securities, while the SEC considers a proposal to allow trading of stock tokens on cryptocurrency platforms like Yahoo Finance and Google Finance.
Binance estimates that if just 1% of global equities were tokenised, the market could reach an astonishing $1.3 trillion. This follows a surge in tokenised assets, which have nearly doubled in value to over $31 billion in the past 100 days, with equities making up around 2% of that. Nasdaq has asked the SEC to approve a rule change to list these tokenised securities, with Coinbase also seeking permission to offer similar services on its cryptocurrency exchange.
Stock tokens, which mirror traditional shares but are recorded on a blockchain, could give investors the ability to trade on approved cryptocurrency platforms. This convergence of traditional finance and blockchain technology is seen as a turning point by Binance Research. SEC Chair Paul Atkins has described tokenisation as an 'innovation' that regulators should support. Trading platforms like Robinhood and Kraken have already started rolling out tokenised equity products to meet growing demand. Meanwhile, the crypto exchange Bullish has requested approval to offer tokenized stocks in the U.S., with Coinbase also planning a similar move.
The potential of tokenised equities is immense, with estimates suggesting a market value of over $1.3 trillion if just 1% of global equities were tokenised. Nasdaq, Coinbase, and other platforms are positioning themselves to capitalise on this opportunity, while the SEC considers regulatory approval. As tokenisation continues to gain traction, traditional finance and blockchain technology are set to converge, reshaping the investment landscape.
