The Weaponisation of Capital Markets

Yesterday I told you about how the ETF market will be completely redundant in the next 10 years as a new and better investment wrapper takes shape: the token.

Instead of an ETF that's just a financial wrapper, a token can do the same thing as an ETF but its able to be traded 24/7 and it's fully programmable.

If you want it to automatically rebalance at a specific threshold, you program it.

If you want it to distribute dividends the instant they're received rather than on a quarterly schedule, you program it.

If you want it to restrict who can hold it based on jurisdiction and compliance requirements, you program it.

If you want it to be used as collateral on one platform and simultaneously earn yield on another, you program it.

That's why Wall Street and CFOs will love it.

But the government and the Trump administration will love it for a seperate reason, and it all comes back to the story I've been writing to you about with digital dollars.

If you want to buy this new form of ETF, this new "token fund" you need to use digital dollars. This is because in order to unlock all these benefits I mentioned, you need to move both the cash and the asset to this new technology.

You can't program a token to do all these things if it still takes a day for the money to move on the traditional Fedwire system, it negates the entire point.

I'll reiterate, that every single digital dollar isn't really a dollar, but it's actually a U.S. treasury bond.

Scott Bessent was very intention to design it this way, because even he admitted that this new form of dollar will lead to a significant boost in the demand of U.S. treasuries.

And why does Bessent want an increased bid for treasuries?

Because the world is dumping them to buy gold... Gold now makes up a higher proportion of global central bank reserves than U.S. treasury bonds.

This is not good news for America, so it needs to continue incentivising people to buy treasuries.

And there's two different strategies the Trump administration is using.

1. Direct -- if countries don't buy and hold U.S. treasuries, they'll withhold military defence and tariff the shit out of you.
2. Indirect -- create the incentive to buy treasuries by encouraging the world economy to move to this new settlement technology.

In either case, countries around the world are going to feel the pain if they don't buy treasuries. Because as the global order breaks down, the entire developed world relies on America to come to its military defence so any withholding of military defence would be a serious security problem for the rest of the world.

And on the other end, America is getting richer while Europe is being left behind. The poorest U.S. state in GDP per capita is richer than essentially every European country. Imagine Trump saying to Europe, you need to adopt our financial technology and the price of doing so is through using these new digital dollars that hold our debt. If you don't, America will get richer and you'll get poorer.

It's a pretty easy decision for them to make...

That's why in just four weeks time, the world's most powerful people in economics and finance are gathering at Jackson Hole to discuss exactly this: "Financial Innovation: Implications for Payments and Policy" -- aka, tokenization and digital dollars.

What we're talking about here is a weaponisation of the financial system. Bessent is clearly setting a strong precedent here and Operation Economic Fury where he's savaging the Iranian economy using this technology is the playbook on countries who defect.

So the story has two sides.

1. The mechanical side, which is what Wall Street cares about (greater efficiencies, more profits).
2. The political side, which is what governments care about (capital war, weaponising financial system).

It's a big story that's frankly not getting the coverage it deserves. Because no missiles are being fired, no bombs are going off, but it's a much more silent conflict playing out in the markets.

So that's why every week, I look to find the biggest opportunities here.

Because the companies and stocks building and adopting this tech aren't investments, they're Americas soldiers to this broader capital war at play. When I talked with the Head of Franklin Templeton's tokenization strategy, he said to me that the tech, the access to that tech, and the intellectual property are strategic military assets of national security.

So if you want to participate here and position in these assets as this capital war is getting underway, the Tokenization Report is where I cover all of that.

I'm running a big discount for just this weekend. An annual plan is $795, down from $1,995. And for each dollar you spend, you get a matching store credit that you can use on any All Star Charts memberships.

In other words, with the purchase of a $795 annual plan, you'll get $795 of store credits you can put towards any other All Star Charts services.

If you want to follow the story you're not being told about tokenization, this is a perfect place to do it.

Click here to join me.