The Rise of Tokenization: Pantera Capital Predicts a Great On-Chain Migration
According to crypto investment giant Pantera Capital, the world is witnessing a significant shift as tokenization moves from being a mere concept to a reality. In a recent newsletter, Pantera’s general partner, Franklin Bi, compares the current trend in tokenized assets to the early days of exchange-traded funds (ETFs).
Bi draws parallels between the rise of tokenization and the evolution of ETFs, stating that the market is on the brink of a transformative moment. He believes that the adoption of tokenized assets will lead to a structural shift in the future of capital markets.
He goes on to explain that the tipping point for tokenization will be reached when certain milestones are achieved. These include daily on-chain equity volume surpassing $1 billion, tokenized equity assets under management crossing $100 billion, a top public company experiencing more liquidity on-chain than on its home exchange, and a global IPO listing bypassing traditional exchanges and issuing shares directly on-chain.
Bi predicts that once these milestones are met, the adoption of tokenization will become the new norm in capital formation, price discovery, and value transfer. Blockchains will emerge as the default destination for issuers and investors, marking a significant shift in the financial landscape.
As the world moves towards this on-chain migration, early adopters are focused on building a better infrastructure for tokenization. However, the true potential lies in the broader transformation of market structure and investor behavior.
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