Blockchain Technology Reshapes Global Capital Market: The Wave of Stock Tokenization Is Coming

More than a decade ago, an article titled "Software Is Eating the World" predicted the wave of technological transformation. Today, we stand on the threshold of another historic moment—Blockchain technology is beginning to reshape the global Capital Market, and the vanguard of this transformation is the rise of stock tokenization.

Recently, a well-known internet financial company announced the launch of stock token trading services based on a Blockchain network in Europe, even tokenizing the equity of some unlisted companies. This move has attracted widespread attention in the financial industry and has driven the company's stock price to a new high.

Currently, the total market capitalization of the global crypto market is about $3.4 trillion, while the traditional stock market reaches an astonishing $135 trillion. This means that the potential market space for stock tokenization is enormous, possibly exceeding 40 times the size of the current crypto market. Although the market share of stock tokenization may be less than 0.1% at this stage, once it breaks the critical point of 3%, this industry is likely to experience explosive growth.

This emerging trading model is the real growth point of Blockchain technology. If this trend continues and ultimately realizes, the impact brought by Blockchain and cryptocurrency may be no less than the effect of "software eating the world." It is foreseeable that the next year or two will be a rapid development period for this field, with more companies joining this track, which will also force some traditional financial service companies to undergo transformation.

However, stock tokenization is not the endpoint of blockchain technology applications. Industry experts predict that the global digital capital market is expected to grow from $20 trillion to $280 trillion, while the digital asset market (excluding Bitcoin) could expand from $1 trillion to $59 trillion.

Currently, we are facing three important turning points: the global demand for stablecoins, the continuous growth of the blockchainization of government bonds and money market funds, and the beginning of stock tokenization. These developments point to a possible future - the true "everything on-chain". Although this goal seems distant and full of challenges, we have already taken an important step.

Blockchain technology is reshaping the presentation of assets and the way value is transmitted, while artificial intelligence is transforming the way information is obtained and bringing about a productivity revolution. Both of these technologies have gone through a process from being overlooked to a bubble burst, and then to a revaluation of their worth, and now they seem to be on the brink of an explosion.

As the wave of stock tokenization rises, we look forward to seeing more large institutions participate in it, jointly promoting the process of this financial revolution. This transformation is not only about technological innovation but may fundamentally change our understanding of assets, value, and the financial system.