The head of a prominent crypto investment management firm foresees one “non-obvious” way in which tokenization, the process of converting traditional assets to tokens on blockchain, will impact markets.
In a new post on the social media platform X, Bitwise CEO Hunter Horsley lays out how he sees tokenization upending traditional stock and equities markets.
“With tokenization, people have focused on the demand side: democratize access to money market funds by tokenizing them! There’s value there, but I think the demand side is potentially not the revolutionary story.
I think the revolution is the supply side.”
According to Horsley, the revolution lies in tokenization’s inherent ability to lower barrier to entry costs for raising capital.
“Today, there are around 4,600 companies in the US that are able to access the public equity markets.
The NAICs (National Association of Insurance Commissioners) estimates there are over 200,000 companies in the US doing over $10M in revenue.
Not all companies want to be public of course; but many simply can’t because it requires immense scale.
Enter tokenization, a new democratized capital market…
Want to be invested in your local dry cleaner or hometown barber shop?”
According to Horsley, this largely untapped resource could revolutionize how small to medium-sized businesses raise capital.
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