Gaps Are a Relic of the Past

Hey!

I'm drinking coffee on a beautiful afternoon in New Zealand. Whenever the sun is out, I leave my office and work outside on the deck. Life is great.

As I was doing my daily review, I saw that a peace deal with Iran was announced and the Strait of Hormuz is set to open. The S&P 500 futures are ripping as I type this. Oil is falling off a cliff.

Look, I don't know the foggiest about the intricacies of the Middle East. I certainly have no intention of visiting anytime soon. I'm quite enjoying this ocean view.

But here's what I do know.

This headline hit while markets were closed. Again. If you were short oil or long defense stocks and wanted to react, you couldn't. The market was shut.

I think we've all been suckered into believing that market closures and overnight gaps are just part of the business. Like that's just how it works and we should accept it. But think about what that actually means. It means the most important geopolitical event of the month can happen on a Saturday and you have absolutely no ability to manage your positions. If you're holding stocks and the market collapses overnight, you can't do a goddamn thing about it until 9:30am Monday morning.

At least during the crypto crashes you hear about in the media, you can press the sell button.

Being based in New Zealand made this even more painful for me. If I wanted to trade US stocks, I had to stay up till 1am to get the execution I wanted.

It's completely unworkable.

So when I tell you that I can now see and actively trade the S&P 500, 24 hours a day, 7 days a week, on a platform called Hyperliquid, this isn't some abstract crypto story. This is me solving a problem that has personally cost me sleep and money for years.

Hyperliquid has listed the first officially licensed 24/7 perpetual product for the S&P 500, sanctioned by S&P Dow Jones Indices themselves. During the initial breakout of war in the Middle East earlier this year, oil trading exploded on the platform because traditional markets were closed. The Wall Street Journal literally called Hyperliquid's 24/7 oil trading the "hottest crypto trade."

Today's Iran deal is the exact same story playing out again. A major market-moving event happened on a weekend while Hyperliquid was wide open.

Now the CME, the largest regulated derivatives exchange on the planet, has followed Hyperliquid's playbook and listed 24/7 crypto futures.

No more gaps on crypto at the CME. And last week, there were rumours that the CME will be introducing the same 24/7 structure for gold and oil. The most traditional exchange in the world is copying the market structure that a crypto platform pioneered.

This is the very first chapter of the tokenization story I've been telling all year and have invested my entire account into.

Whether you like it or not, every market in the world is moving to 24/7. And the only way it can do that is if it lives on blockchain rails. Because institutions can't have entire teams manning the computers overnight. They need their operations automated by code outside of working hours. That's what blockchain does. It runs the settlement, the clearing, and the record-keeping 24/7 without a single person touching it.

It's why the DTCC, the single most important entity in all of capital markets, is beginning their service to tokenise over $100 trillion of assets this July.

Euroclear and the JSCC, the European and Japanese equivalents of the DTCC, are doing the same thing. Japanese government bonds are already being tokenized to allow Japanese institutions to manage collateral outside working hours. When Europe and Japan, two of the most conservative jurisdictions for capital markets on earth, are moving forward with this, it's no longer an experiment by tech bros in San Francisco.

It's the beginning of an infrastructure rollout that's about to redefine how money and capital moves around the world.

And today, sitting on my deck watching the Iran deal move markets while traditional exchanges were dark, I'm more convinced than ever that the people who own the companies building these new rails are going to do very well over the next decade.

I'm writing about exactly which companies and tokens those are in the Tokenization Report.

If you haven't joined yet, now would be a good time.