Tokenized Stocks Will Transform Trading: Coinbase CEO

According to Coinbase CEO Brian Armstrong, tokenized stocks will transform global markets to provide 24-hour trading, fractional ownership, and real-time settlement.

According to Coinbase CEO Brian Armstrong, tokenized stocks will transform the world markets and offer various opportunities to traders around the world.

Armstrong pointed out various revolutionary attributes: tokenized stocks increase international access, allow fractional ownership, and allow 24/7 trading.

Source:  brian_armstrong

He also remarked that real-time settlement will accelerate transactions and that perpetual futures and new models of governance may come up.

Crypto Community Splits on Tokenization’s True Potential

Armstrong had mixed reactions to the vision by X users. Andreas Kohl supported the concept of tokenizing shares but not derivatives of CSD-held shares on Base.

On X, Kohl says, the big deal is on-chain DRS with disintermediated trading of native BTC. He emphasized that post-fiat markets would not be manipulated by monetary policy and would eliminate naked short sales.

Source: aejkohl 

Jack Holdorrson is optimistic, forecasting that the next few years will witness the tokenization of many people.

The other X user brought up governance issues, charging Washington with Wall Street politics that were outmoded to seize blockchain innovation. He decried a government program costing 55m and added that the initiative will be run by eleven insider-packed advisory committees.

The user likened the program to bailouts in 2008, implying that it cuts corners to give more weight to strongmen other than true innovation.

German Foundation Coin provided information on X, saying that tokenization requires effective instruments of enforcement. GFConBase added, Access, and liquidity scale. The problem is that trust and enforceability do not, unless the system is designed to have them.

Source: GFConBase 

Legal rights and finality of settlement need to be on-chain; off-chain commitments will not support growth.

Retail Access Expands Despite Regulatory Uncertainty

Democratization of investment: now ordinary people have access to assets previously available to high-net-worth investors (due to tokenization).

Interest in retail traders increases at a high rate. Professionals are warning new investors to be careful, as tokenized stocks are less regulated.

According to James Angel of Georgetown University, a token is an instrument that is not issued by the company; tokens are side bets on corporate prospects.

Market watchers are concerned with legal and financial risks; the new asset class requires more transparent rules.

The amount of tokenized equity transfers shot up 76% last month, and the total value was approximately 2.46 billion with RWA.xyz data.

Armstrong unveiled the aggressive growth strategy at Coinbase. By 2026, the company will develop an all-in-one exchange platform that will enable the trading of crypto, stocks, and commodities.

Source: https://www.livebitcoinnews.com/tokenized-stocks-will-transform-trading-coinbase-ceo/