The SEC Just Enabled the $100 Trillion Trade
Kia ora!
I just touched down at Auckland Airport, back in New Zealand after two flights over 18 hours. I still have another flight left!
Before I went to the airport, the SEC just handed Wall Street the keys to tokenize $100 trillion in equities, and the entire crypto market sold off because nobody actually read the filing.
Buried in the details, the SEC isn't "delaying" tokenized equities, they're restricting issuance to the companies themselves, which means the biggest firms on earth are about to bring real stock onto the blockchain.
If you understand what that means before the rest of the market does, you won't be offside when the repricing starts in a little over a month's time.
Why am I so confident in this?
I'm currently looking at an Air New Zealand plane on the tarmac.
I know that if I buy a ticket and fly on that plane, Air New Zealand is responsible for getting me back home safely.
But imagine instead that the plane was built by a bootleg engineer who just painted the Air New Zealand logo on it.
How would I know it's safe?
How do I even know it's going where I need it to?
That's the difference between an issuer-sponsored and a third-party-sponsored tokenized stock. When the SEC says only issuers can tokenize, they're banning the bootleg planes.
Only the real airline gets to sell you a seat.
Everyone is missing the $100 trillion trade.
Michael Burry came out today and said the SEC's plan to tokenize the entire stock market could create a nightmare for investors, opening them up to all sorts of risk.
Here's the thing; the issuer-only model is exactly what kills that risk. When Nvidia itself issues the token, Nvidia stands behind it. There's no counterparty gap. There's no dodgy exchange creating something out of thin air. The risk Burry is worried about is the problem the SEC just solved.
This reminds me of when people were calling Bitcoin a scam in 2015 and 2016. It was still niche, and they completely missed the point. In the ten years since, Bitcoin has returned over 30,000%.
Right now, the $100 trillion trade is the same kind of story; not yet mainstream, widely misunderstood, and actively bet against. People are lumping the bootleg planes in with the real ones and dismissing the entire trend.
The SEC announced it's taking the $100 trillion trade seriously, building the regulatory framework for it to have long legs and the market went down on that news.
Imagine Air New Zealand shares dropping because the government said no one can build fake planes and pretend they're real.
This is about to get unlocked in July.
There is one organisation that is the single most important player in all of global finance. They settle over $2 quadrillion in transactions annually. They hold over $100 trillion of assets. They process every single one of your stock orders.
They are invisible to you, by design, but they control the entire financial market's plumbing.
And in a little over a month's time, they'll be unlocking the $100 trillion trade, bringing every stock, bond, and fund onto blockchains. A handful of companies will be collecting the tolls when trillions change hands every single day.
The regulatory runway is already being paved. The GENIUS Act pulled stablecoins into the federal system last year. The next piece, the CLARITY Ac, just cleared a key Senate committee. Once it crosses the finish line, the rules for everything else fall into place, and there will be no doubt left in the market's mind.
Larry Fink, in his last shareholder letter, said front and centre that this unlock will have a larger impact on the global economy than AI.
Even Jamie Dimon, a lifetime skeptic of blockchains, has recognized that tokenization is the single largest threat to his company. Just last month he said his rivals now include "a whole new set of competitors emerging based on tokenization."
Aren't these always the best setups to make the most amount of money?
A new trend that nobody in the mainstream is talking about, but major companies, organisations, and executives are pouring serious budgets into.
And when it finally surfaces, people completely miss the point, they sit on the sidelines or actively bet against it.
This is why I'm going live this week.
On Thursday, May 28th @ 5 pm ET, I'll be detailing everything you need to know about the $100 trillion trade.
In this live presentation, I'm going to let you in on:
- The upcoming IPO everyone will be talking about this summer that's a major part of this trade. I'll tell you the exact ticker symbol and why I'm waiting for a post-IPO pullback before I consider investing.
- Why Ethereum is a sucker's bet. It's the asset most people are buying to play this shift, but the institutions like Visa and Mastercard are actually building on a new system.
- The little-known coding language built specifically for Wall Street which is powering this major opportunity.
You'll get all the details about this $100 trillion trade, before the technology goes live in July 2026, a little over a month away.
The GENIUS Act already pulled stablecoins into the federal system last year.
The next piece, the CLARITY Act, just cleared a key Senate committee.
Once it crosses the finish line, the rules for everything else fall into place.
When that happens, there will be no doubt left in the market's mind
Cheers,
Louis Sykes
Senior Crypto Analyst, All Star Charts
