Tokenization Boom: Experts Point to Ethereum, Solana, and Chainlink

Bitwise Chief Investment Officer Matt Hougan thinks that tokenization can bring significant benefits to investors, but it's not just about owning tokenized assets. According to Hougan, most of the return comes from the underlying stock itself.

Hougan emphasized that investors who want to benefit from tokenization need to own the infrastructure that makes it happen. He pointed out that Ethereum and Solana are high-performance layer 1 networks that serve as the base for tokenization.

Chainlink, a company that supplies real-world data to blockchains, is another key player in this space. Hougan estimated that Chainlink holds around 70% to 80% of the market for connecting blockchains to real-world data and put its valuation at roughly $6 billion to $7 billion.

Hougan expects two significant shifts over the next decade: markets that never close, allowing investors to react to major events in real-time, and loans for everyone, making borrowing against stocks more accessible to a wider range of investors.