In Armstrong’s words, tokenisation is “much better for the end user,” pointing to a future in which markets are available around the clock, assets flow like data, and ownership is unlocked for all.
Armstrong stated that “everything that can be tokenised, will be” during a recent New York Times event, indicating a significant change for institutions, investors, and markets.
The process of turning physical assets like stocks, bonds, real estate, and even artwork into blockchain-based tokens is known as tokenisation, and it is gaining traction.
According to Armstrong, this change will make finance far more accessible, quicker, and equitable. Tokens with clever programmability have the potential to automate dividend payments, facilitate fractional ownership, and remove obstacles that have historically prevented regular investors from accessing high-value markets.
Armstrong’s opinions support Coinbase’s long-term goals. The startup is working towards a “super app” for digital currency, which would be a single, integrated platform for tokenised assets, loans, investments, and payments.
If the idea is effective, anyone with a smartphone and an internet connection could be able to access international marketplaces.
Why is it important? Tokenisation can enable micro-investing, eliminate middlemen, lower expenses, and release liquidity in sluggish markets.
This implies that common people may soon have access to opportunities that were previously only available to institutions and elites, such as private equity, fine art, or portions of buildings.
As banks, regulators, and fintech companies investigate tokenised securities, settlement, and asset issuance, industry analysts say Armstrong’s appeal is more than just bluster.
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