The S&P 500 has broken through 7,534 points, marking an all-time high and an impressive 75% gain over the past five years. However, the majority of this growth has been captured by a relatively small portion of the global population, leaving most people around the world excluded from participating in these gains.
Coinbase CEO highlights financial system barriers
Brian Armstrong, CEO of Coinbase, argued that the traditional financial system now resembles a closed club. He stated that only the widespread adoption of tokenization can open up access to global capital markets for billions of people currently sidelined by regulatory and logistical roadblocks.
Armstrong emphasized that, due to strict regulations based on geography, complex compliance requirements, and the heavy bureaucracy of brokerage systems, billions face real difficulties in directly buying shares of prominent US technology firms.
“Imagine being on the sidelines of this growth. Billions of people do not even need to imagine it, because strict geographical barriers, complex compliance requirements, and brokerage bureaucracy leave them with no practical way to buy shares in major US technology companies,” wrote Armstrong.
Analysts estimate that more than half of the adult population in developing economies remain disconnected from global equity markets.
Coinbase expands tokenized stock trading
To address this gap, Coinbase, a leading cryptocurrency exchange headquartered in the United States, recently launched the “Everything Exchange.” The initiative, introduced for non-US users through its offshore divisions, offers tokenized stock trading. Each token is fully backed by underlying shares.
With this service, individuals can use any internet-connected smartphone to purchase fractional shares in companies like Apple or Nvidia, bypassing traditional Wall Street intermediaries and still receiving authentic dividend payouts.
Mini dictionary: Tokenized stock – A digital representation of a real-world stock on a blockchain, allowing fractional ownership and global access while mirroring the value and dividend rights of underlying shares.
Wall Street joins blockchain efforts
The trend toward tokenization is attracting not only crypto firms but also long-established financial institutions. The Depository Trust & Clearing Corporation (DTCC), a key clearinghouse managing transactions worth quadrillions of dollars annually, recently worked alongside JPMorgan and BlackRock to complete tests involving the transfer of exchange-traded funds (ETFs) onto blockchain-based systems.
These pilot projects aim to modernize the infrastructure supporting securities trading, targeting faster settlements and broader investor access worldwide.
Wall Street is no longer objecting to tokenization but is moving to take a leadership role through large-scale blockchain pilots with major institutions.
Real-world asset tokenization, commonly referred to as RWA, has seen significant expansion. Research from rwa.xyz places the total market value at more than $33 billion.
| Asset class | Current market value (2024) | Main platforms/institutions |
|---|---|---|
| Tokenized real-world assets (RWA) | $33 billion | Coinbase, rwa.xyz, DTCC |
| S&P 500 index | 7,534 points | Traditional US exchanges |
At the same time, the US Senate is advancing the Clarity Act, which would clarify the legal framework for digital assets, bringing tokenized stocks closer to mainstream regulatory acceptance. Industry observers believe that continued momentum could significantly weaken the monopoly held by traditional brokers in global stock trading.
