Tokenization Will Reshape Global Finance

Tokenization as an unstoppable trend

According to Tenev, tokenization is like an unstoppable train. He believes the entire financial system will gradually migrate as traditional assets are digitized and placed on blockchain rails. This transformation will not only change stock trading but also redefine the mechanics of capital markets.

Robinhood’s entry into tokenized equities

Robinhood has launched tokenized stock trading in Europe, enabling investors to access U.S. equities as on-chain assets. This strategic move allows trading 24/7, beyond traditional market hours. Tenev emphasized that tokenized stocks will soon become the primary gateway for non-U.S. investors seeking exposure to American companies.

Expanding vision to real estate

Beyond equities, Tenev sees real estate as the next frontier for tokenization. The mechanism mirrors that of tokenizing private companies: real-world property is structured legally, and tokens are issued to represent ownership stakes. This could transform real estate into a more liquid, tradable market accessible to investors worldwide.

Benefits and challenges

The benefits of tokenization include improved liquidity, lower transaction costs, continuous global trading, and borderless accessibility. Yet, the greatest challenge lies in regulation rather than technology. While Europe has taken the lead with clear rules, the U.S. remains uncertain, creating risks of falling behind in digital asset innovation.

Future outlook

If regulatory clarity is achieved, tokenization could serve as the gateway for integrating traditional assets into digital markets. Investors may soon own stocks, real estate, or bonds globally with simple on-chain transactions. However, without supportive legal frameworks, the transformation may stall, leaving the U.S. at a disadvantage in the race for digital financial dominance.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.