Tokenisation, Tokenisation, Tokenisation

If you're an investor, you need to be aware of tokenisation.

It's the single most important theme to understand right now, and it's going to have an even larger impact on the global economy than AI.

Each epoch of financial markets has improved on the last, making the process easier and allowing countries like the United States to flourish and raise standards of living dramatically.

First it was the introduction of trading pits themselves, then electronic trading, and more recently processes like netting at the National Securities Clearing Corporation (NSCC), which nets transactions across the financial system, reducing the settlement load by more than 98%.

These are the kinds of innovations that happen behind the scenes every time you press the buy button at your broker, without you even being aware of them.

And the next major phase of financial markets, the single largest innovative leap in their history, is already under way, and most investors don't even know what it is.

It involves using blockchain technology to settle transactions, effectively compressing the process of financial settlement, reducing risk in the financial system, and enabling 24/7 trading of stocks.

Right now, only a few dozen billion dollars' worth of assets have been tokenised, as shown below.

But McKinsey and other consulting firms anticipate this will balloon into the trillions within the next few years alone.

Here are their estimates.

Jamie Dimon just highlighted in his annual shareholder letter that tokenisation is one of the most significant competitive threats that JPMorgan needs to navigate, naming it alongside stablecoins and smart contracts as forces reshaping finance.

This is someone who has been famously skeptical of Bitcoin and crypto, now acknowledging that tokenisation is here and that JPMorgan needs to act on it.

I'm giving you the heads-up before you hear all about this over the next few years across the mainstream media.

In the coming months, I'll walk you through what's actually happening behind the scenes and how to best profit from the single largest innovation in the history of financial markets.

But for now, just remember these words.

Tokenisation, tokenisation, tokenisation...

Cheers,

Louis Sykes
Senior Crypto Analyst, All Star Charts