Author: Kokii
Why Stock Tokenization is Struggling
To understand the dilemma of stock tokenization, one must first look at the key to successful RWA/offline asset on-chain. Whether it's government bonds, funds, stocks, private credit, or even intellectual property, the essence is simply holding physical assets offline and issuing a set of Tokens on-chain, which is technically no different from issuing a memecoin.
However, all project parties must return to four core questions: Why issue? How to issue? How to sell? How to use? Without solving these problems, RWA will be like most meme coins, lacking actual demand and liquidity.
Taking the currently most successful RWA product category, tokenized US Treasury/money market funds as an example, government bonds, as a simple rights and predictable cash flow standardized debt instrument, its tokenization core has gone through three steps: finding real demand, establishing a compliant issuance framework, and building token utility:
· Why issue: Institutional investors [Crypto VC/Fund] have many idle stablecoins on-chain and need a risk-free interest-earning scenario
· How to issue: Fund - fund management structure, with tokens legally representing fund shares, the fund responsible for token issuance and asset holding, fund managers making investment decisions, both fund and fund managers requiring compliant licensing, and supported by institutional-level services like custodians, auditors, and transparency reports
· How to sell: Only qualified investors after KYC/AML can buy, 7*24
· How to use: Token derivative utility, supported by mainstream DeFi, can be used as collateral to borrow stablecoins, with some centralized exchanges starting to support it as collateral
Stocks, as a complex rights (including governance rights) and uncertain cash flow ownership certificate, must overcome significant operational and compliance obstacles in their tokenization.
[The translation continues in the same manner for the rest of the text, maintaining the specified translation rules for specific terms.]The Road to the Future
Despite the harsh reality, the true significance of this "pilot" lies in exploring future possibilities. The future of tokenized stocks depends on its ultimate positioning within the entire financial ecosystem.
· Path A: Mainstreaming and Infrastructure. If global mainstream regulatory frameworks mature and become clear, with stablecoins flowing into households and major financial institutions placing a certain amount of assets on-chain, issuance custodians will gradually evolve into traditional financial giants like JPMorgan and Bank of New York Mellon. At that time, stock tokens will become a more powerful "composable super ADR". Blockchain will become the unified settlement layer for global equity markets, integrated into various DeFi protocols, with companies going public directly through STO issuance on-chain
· Path B: Offshore and Emerging Asset Platforms. If mainstream regulation continues to tighten, the crypto world may evolve into an efficient offshore innovation center. At that point, tokenization will no longer seek to compete with NYSE in trading Apple stocks, but instead turn into a "first launch platform" for new or illiquid assets, such as private equity of Pre-IPO companies, share-based transfers of VC funds, or even securitization of future income streams like intellectual property.
The current immaturity of tokenized stocks is not a sign of failure, but rather an early necessary stage of infrastructure development. The measure of its success should not be whether it can provide a better Apple stock trading experience today, but what new markets and financial behaviors it creates for tomorrow. For all market participants, understanding this is key to seizing the initiative in the upcoming financial revolution.
