Former NASDAQ CEO Predicts the Multi-Trillion-Dollar Global Market to be Tokenized, Is He Right?
Robert Greifield used to work as the CEO of NASDAQ, as well as chairman. Recently, on January 30th, he was quoted on Twitter regarding what he thinks the future of tokenization will bring, saying “100% of the stocks and bonds trading on Wall Street today could be tokenized, and in five years, 100% of the stocks and bonds on Wall Street WILL be tokenized.
However, what does this mean for the rest of the industries around the world?
First of all, the impact it would make on the crypto market would be substantial, though it may be a challenge could be difficult for even the most scalable platforms to handle the influx of demand that would come from Wall Street and other financial institutions.
Not only scalability, but would these digital exchanges be prepared to offer the same level of quality, security, and regulatory compliance.
Right now, the equities, bonds, and real estate of the global economy add up to about $508 trillion, while the total crypto market is only at $113 billion presently. To put it in perspective, the cryptocurrency market has only handled a value that is nearly 5,000 times smaller than what the traditional market has to hold, which means there’s a lot of work to be done to meet those needs.
The creation of the proper infrastructure will need to securely handle about $914.4 billion worth of value to meet the needs necessary for the market, according to tZero founder and OverStock CEO Dr. Patrick Byrne. It would be a substantial bonus for companies like tZero, which says it can
“revolutionize capital markets and address some of the inherent inefficiencies of Wall Street so that financial processes and investors are less beholden to traditional, institutional market structures.”
Bitcoin will obviously be a necessity in purchasing these various forms of value, but the biggest benefactor will end up being mercantile exchanges, which includes NASDAQ. These platforms will be uses as a means to connect buyers and sellers, and they thrive with regulations.
Furthermore, the exchanges will need to move liability to consumers, because the instruments will now be considered Bearer securities (tokens), when they were formerly categorized as Regulator securities (stocks). Essentially, the holder of the “token” would be able to sell if necessary. Bearer security simply means that the owner owns the token by simply having it, and there is no way for companies to manipulate it. Essentially, the change could save billions of dollars in taxpayers’ money.
Right now, there are not many companies that will take Bitcoin instead of fiat currency, but the added liquidity would make it possible to accept fractional shares. As reported on by Ethereum World News, the publication says,
“Besides, there will be better regulation allowing investors to buy and sell equities transparently. Argument is, Wall Streeters favor less monitoring (and regulations) but through tokenization, the field will be leveled allowing ordinary investors to benefit from a system where rules are not bent to favor anyone.”