The Trend Eating All of Finance
Tokenisation is the single biggest mega trend in all of finance that no one is not talking near enough about.
In the next 5-10 years, every time you purchase a stock or engage with a financial institution, that transaction will ultimately settle on blockchains.
The infrastructure is already being built out; the NYSE and Nasdaq are building out their tokenised trading platforms and every financial institution has already built their early pilots for tokenised deposits.
Even Stanley Drunkenmiller made a brief comment, saying that most of finance will move to tokenised stablecoins in just 10-15 years because it makes trade so much more efficient.
While these developments may be difficult to grasp because we're at the early stages of this infrastructure being rolled out, there are signs that tokenisation are here right now in a practical way.
And it has everything to do with this conflict in Iran.
I'm about to go on a long road trip because I'm moving, and at some point I'm going to reluctantly have to fill up my tank.
Oil is the single hottest trade in the world right now, yet much of the volatility we're seeing is happening outside traditional market hours during the weekend.
But a handful of decentralised crypto exchanges have leveraged crypto's most successful trading product of all time - the perpetual future.
Doing so, traders can cash in on the volatility outside market hours and trade 24/7 oil. One of these markets has gone from $340M to $7.3B, a 24x increase, in cumulative volume in just the last two weeks.
But it's not just oil, it's other commodities, individual stocks, the equity indexes.
Crypto has made it possible to trade these markets in a permionless way, around the clock.
And it's going to eat all of finance.
It's the single biggest mega trend that is not getting enough attention.
Cheers,
Louis Sykes
Senior Crypto Analyst, All Star Charts