Blockchain is reshaping the world: from software to asset tokenization

In 2011, an article about software changing the world was published in The Wall Street Journal, attracting widespread attention. The article pointed out that software is disrupting traditional industries at an unprecedented speed and scale. More than a decade later, this view still holds true, especially with the rapid development of artificial intelligence technology.

Today, blockchain technology seems to be on a similar path. After more than a decade since its inception, we are finally witnessing the beginning of "blockchain devouring the world," which all started with the practical application of tokenization in the US stock market.

Although stock tokenization is not a new phenomenon, the current participants are no longer limited to pure cryptocurrency companies. Well-known internet companies have also begun to venture into this field. For example, a certain online trading platform recently announced the launch of stock token trading services based on a certain blockchain network in Europe, even tokenizing the equity of some unlisted companies. This move has caused a huge response in the financial sector and has driven the company's stock price to a new high.

Currently, the total market capitalization of the global cryptocurrency market is about $3.4 trillion, while the total market capitalization of the global stock market reaches $135 trillion, a gap of nearly 40 times between the two. This means that the potential market size for stock tokenization is enormous, and as the overall market capitalization grows, this ceiling will continue to rise.

Although the current market share of stock tokenization may be less than 0.1%, once it breaks the 3% threshold, it could signify explosive growth in the industry. This is precisely the future market that emerging trading firms are targeting, and it represents a true growth point for Blockchain technology.

If this trend continues, the impact brought by Blockchain and cryptocurrency may be no less than "software eating the world." The next 1-2 years are expected to be a rapid development period in this field, with more companies joining the competition and traditional financial service companies possibly being forced to transform.

However, stock tokenization is not the end of blockchain technology. A well-known industry figure predicts that the global digital capital market is expected to grow from $20 trillion to $280 trillion, while the digital asset market (excluding Bitcoin) could grow from $1 trillion to $59 trillion.

Currently, we are facing three important turning points: the global demand for stablecoins, the continuous growth of on-chain scale for government bonds and money market funds (the so-called RWA), and the beginning of stock tokenization. These trends collectively point to a possible future: all assets being on-chain, achieving true "everything on-chain."

Although these numbers seem unrealistic now, looking back ten years, the prediction of Bitcoin reaching $100,000 was equally hard to believe. Today, Bitcoin has surpassed the $110,000 mark and continues to set new historical highs.

In the foreseeable future, blockchain technology is reshaping the presentation of assets and the way value is transferred. At the same time, artificial intelligence is changing the way information is acquired and bringing about a productivity revolution. Both of these technologies have gone through more than a decade of latency, from being ignored to a bubble-filled phase, and now to a revaluation of value, seemingly on the eve of an explosion.

Who will become the next important player in the field of stock tokenization? We shall see.