Tokenisation Is About to Eat Finance

I've been asking myself one question all week: do I have the right exposure?

Am I actually invested in the areas with the greatest growth potential?

When I invest in crypto, I'm not treating it like an extension of traditional trading, chasing moves in random tokens hoping for a quick +20%.

We are operating in an asset class at the frontier of financial markets. I'm here to identify the winners of the coming years early and get as much exposure to them as I can.

And right now, I'm uncomfortable with my current allocation, not because I own too much of something, but because I don't own enough of what's exposed to tokenisation.

If that word doesn't mean much to you yet, it will. Give it a few years and you'll see it everywhere in the mainstream media.

Tokenisation is the process of bringing traditional, real-world assets, stocks, commodities, treasuries, on-chain, where they're represented as tokens. Hence the name.

So why is this happening?

Because in the current system, when you place an order, there's an enormous amount of friction. Institutions need to post collateral. The trade takes days to ultimately settle. Intermediaries sit at every stage clipping fees. It's slow, expensive, and opaque.

Right now the tokenisation industry only manages a few dozen billion in AUM. But the most conservative consulting firms are projecting that number to hit $3 trillion by 2030.

Tokenisation is about to eat of all finance.

I think this is the single greatest investment opportunity I've ever seen in crypto, because for the first time we're watching it move from a niche technology to infrastructure that will soon settle trillions of dollars of activity.

Sometimes I'm uncomfortable because I own too much of something. This is one of those rare times where I'm uncomfortable because I don't own enough.

If you're a serious crypto investor and you're not thinking about whether you have enough exposure to tokenisation, I don't think you're taking this seriously enough.

Cheers,

Louis Sykes
Senior Crypto Analyst, All Star Charts