Blockchain is Reshaping the Financial World: Stock Tokenization Opens a New Chapter

In 2011, an article titled "Software Is Eating the World" was published in The Wall Street Journal, articulating the view that software is changing the world at an unprecedented speed and scale. More than a decade has passed, and this assertion remains applicable, especially in the field of artificial intelligence. Today, we seem to be standing at the starting point of another transformation—the moment when Blockchain technology begins to truly change the world.

Recently, the implementation of stock tokenization in the US marks the beginning of this transformation. Although stock tokenization is not a new phenomenon, the situation changes when well-known internet companies enter this field. A well-known online trading platform announced the launch of stock token trading services based on a certain Blockchain network in Europe, even tokenizing the equity of some unlisted companies. This news has caused a huge response in the financial sector.

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 reaches $135 trillion, with a difference of nearly 40 times between the two. This means that the potential market size for stock tokenization is huge, and as the market capitalization of stocks grows, this ceiling will continue to rise. Although the current market share of stock tokenization may be less than 0.1%, once it breaks through 3%, it could usher in explosive growth.

If this trend continues, the impact brought by Blockchain and cryptocurrency may be no less than "software eating the world". The next year or two may be a period of rapid development in this field, with more companies joining and prompting some traditional financial service companies to transform.

However, stock tokenization is not the end point of blockchain technology application. An industry insider predicts 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 demand for stablecoins, the continued growth of on-chain government bonds and money market funds, and the beginning of stock tokenization. These developments could ultimately lead to the true "everything on-chain".

Although this data may seem somewhat unrealistic now, looking back ten years, the prediction that Bitcoin would reach $100,000 also seemed absurd. Now, Bitcoin has surpassed $110,000 and continues to set new highs.

In the foreseeable future, Blockchain technology is reshaping the presentation of assets and the way value is transferred. At the same time, artificial intelligence is changing the way information is acquired and bringing about a productivity revolution. Both of these technologies have gone through a process from being overlooked to experiencing a bubble and then to value reshaping; perhaps now is the time for them to show their full potential.

As for who will become the next important player in the stock tokenization market, we are waiting to see.