The Biggest Story You're Not Being Told
Everything you've been told about crypto is incorrect.
The value of blockchains isn't decentralization, it's composability.
Tokenization is the single largest story you're not being told in financial markets.
You need to know why this shift is happening, and then you can make money in this new emerging mega trend.
The hidden tax on humanity.
The biggest problem in financial markets today is that data is spread across endless systems.
While it doesn't sound catastrophic, it's actually a major hidden tax on humanity.
Simply, every financial institution, bank, broker, insurance provider, and government agency has their own independent databases that do not talk to each other.
Billions are spent every year just making sure these independent systems have the same data.
Worse yet, if you buy shares on your broker, you don't actually receive your shares for an entire day because they need time to update their database.
And in that window, your broker has to put aside money to make sure your trade settles.
That costs money and they secretly send you the bill in the form of fees.
This is about to change.
There's an organization that most people have never heard of, yet it holds $100T of assets and last year alone it processed more than $5 quadrillion in transactions.
Their name is the DTCC.
And they just announced this week they're putting systems onto DLT (distributed ledger technology), which is industry speak for tokenization.
The ultimate goal is to bring all these independent databases into one composable system. That means all these databases will fit together like Lego pieces; right now they can't be stuck together.
Larry Fink, the CEO and founder of the largest asset manager in the world, just said that tokenization will have a larger impact on the global economy than AI.
But is the media telling you this story?
I doubt it.
Here's what you need to know.
The media will likely beginning covering tokenization in more detail beginning in July; that's when the first test runs begin.
But October is when this story will really start picking up traction, because that's when the DTCC will allow every financial institution to tokenize their $100T of assets.
The reason why this is happening is because when the financial system is composable it means each of the following will disappear:
- The reconciliation process (making sure the data matches different systems) that costs us billions in hidden fees.
- The settlement window (the time between you buying a stock and actually receiving it) squeezes from a day to instant, unlocking billions in trapped capital.
- International markets instantly move from being isolated to interconnected.
This isn't about decentralization.
This isn't about removing the middle man.
Tokenization's primary goal is to make the financial system composable which will unlock billions of value, and there are a handful of companies at the forefront of this major transformation.
I'm finalizing my research and talking with industry leaders on the best picks and shovels play to this theme, and later this month I'll be dropping my full list to take advantage of this enormous opportunity.
Cheers,
Louis Sykes
Senior Crypto Analyst, All Star Charts