Tokenization Wave Forecasted to Reshape Markets at Record Pace

Commodity Futures Trading Commission (CFTC) Chairman Michael Selig forecasts a massive wave of asset tokenization. He believes regulators and investors must prepare for this trend, which he claims will reshape markets faster than any previous changes over the past decades.

The consultancy McKinsey predicts that tokenized assets will be worth $1.9 trillion by 2030, up from $38.6 billion today. Tokenization involves representing an asset's ownership information as a digital token on a blockchain.

Investors who buy tokenized assets directly won't capture the value created by tokenization. The benefits are mainly captured by services that handle the tokenization process and by the blockchain networks where these tokens are held and traded.

Solana is a leading network for stock tokenization, with $491.1 million in tokenized stocks on its chain as of September 25. Robinhood Markets has launched its own blockchain to trade tokenized stocks, capturing fee revenue directly from issuers. This provides a clear link between owning shares and the economic upside from their business activities.