Tokenization Is Set to Fundamentally Shift Global Capital Markets

This trend is being fueled by recent moves from major financial players. Crypto exchanges such as Coinbase COIN and Kraken are expanding into traditional asset classes

Tokenization is set to fundamentally shift global capital markets by blurring the lines between equities and crypto tokens, according to a Monday report from Bernstein analysts.

Bernstein's researchers suggest that as tokenization grows, conventional equities will be issued and traded as blockchain-based assets, creating a hybrid financial landscape.

"Tokenization will blur the gap between crypto tokens and equities, as traditional equity assets are tokenized on the blockchain," Bernstein analysts wrote in a note sent to Benzinga.

This trend is being fueled by recent moves from major financial players.

Crypto exchanges such as Coinbase (NASDAQ:COIN) and Kraken are expanding into traditional asset classes, while broker-dealers like Robinhood (NASDAQ:HOOD) are embedding more crypto products into their offerings.

This convergence is "leading towards more integrated one-stop shop multi-asset investment platforms," Bernstein said.

Bernstein highlighted the growing regulatory clarity around digital asset securities as a key catalyst, anticipating the passage of a digital assets market structure bill in 2025.

This, analysts say, will enable platforms to seamlessly offer both tokenized equities and cryptocurrencies. "With the SEC and CFTC turning crypto friendly, we expect the U.S. onshore crypto opportunity to expand," the note added.

Bernstein also emphasized that tokenization could drive efficiencies and new liquidity pools.

"We see a world where crypto exchanges will offer spot crypto, crypto derivatives, and tokenized equities, while broker platforms will also scale up their crypto services."

This push towards tokenization underscores a broader shift in how digital and traditional finance are intersecting, reshaping how investors access and trade assets globally.

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