A revolution is brewing in finance, promising to shatter the old walls of Wall Street and bring assets like stocks, bonds, and even skyscrapers onto the blockchain. It’s called tokenization, and it could fundamentally change how we own, trade, and think about value. To understand what this means for the average person, we broke down the concept and spoke with Ken DiCross, co-founder of the blockchain interoperability platform Wire Network, about the future of a tokenized world.
1. What Is Tokenization, Really?
Tokenization is taking a real world asset, like a share of Tesla stock, and turning it into a digital token that lives on a blockchain.
What’s a blockchain? Think of it as a super secure, shared digital ledger that can’t be easily tampered with. It’s the same technology that powers cryptocurrencies like Bitcoin.
By putting a stock into this secure digital wrapper, it can move faster, more freely, and with fewer middlemen across the internet. As Ken DiCross puts it, the goal is simple: “It’s really bringing all assets in this world on chain, which is exactly where they should be.”
Is this like buying Tesla stock as a crypto coin? Or something else entirely?
It’s not a meme coin. You’re not buying a lookalike or fan-made token. You’re buying a digital representation of an actual share, backed 1:1 by the real thing. It should legally entitle you to the same benefits, like dividends, though this depends on how it’s issued and regulated.
What’s the difference between owning a tokenized stock and a regular share through, say, Robinhood?
On Robinhood, your stocks are locked into their system. A tokenized stock, however, is portable. You could hold it in a personal digital wallet, trade it globally 24/7, or even use it in new types of apps, like DeFi (Decentralized Finance) lending platforms. It’s like owning digital cash instead of store credit locked to one specific store.
2. Why Does This Matter?
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