Bitcoin Evangelist Michael Thaler said the upcoming tokenization of financial assets could change the way credit and yields are priced across the economy, posing direct challenges to the business of traditional banks and brokerages.
“The real power of tokenization is that it creates a free market of credit creation and yield for asset owners.” strategy The founder and chairman spoke Thursday on CNBC’s “Squawk Box.” “So if you can tokenize a large amount of securities, you can shop around for the best credit terms and highest yields.”
In contrast, banks effectively dictate the terms of loans for their customers in the TradFi (traditional finance) system, he added.
“In the 20th century TradFi economy, banks decided they couldn’t get credit, they couldn’t get yield, and there was nothing they could do about it,” Thaler said. “Tokenization is therefore a free market for capital, creating higher velocity and higher volatility of capital assets.”
Saylor’s comments go beyond the usual pitch for tokenizing “real world” assets such as stocks, bonds, funds and private credit. Enthusiasts often tout blockchain technology’s potential to bring faster settlements, 24-hour liquidity, broader access to the stock market for retail investors, and increasingly the trading of shares in private companies.
The comments came as the industry watches with bated breath as the market structure bill, known as the Transparency Act, continues to make its way through Congress. If ultimately signed into law, it will, among other things, create a legal framework for bringing real-world assets fully on-chain.
Cryptocurrency investors are also looking forward to guidance from the Securities and Exchange Commission regarding tokenized stocks, which could allow blockchain-based stock representations to be traded alongside traditional markets. The commission issued a statement earlier this year suggesting that while tokenized securities would likely enter mainstream finance, they would still be subject to traditional securities laws.
coinbase, robin hood and gemini We are already currently offering tokenized stock trading to certain customers.
