Blockchains offer new ways to invest in assets like art, bonds, and real estate. They’re made into digital pieces called tokens. This makes owning parts of big assets easy for everyone.
However, tokenized private company shares have issues. While they promise 24/7 trading and access, many are just digital forms of murky, hard-to-sell stocks. Investors face unclear rights and few safeguards.
- Real equity rights aren’t backed by law.
- Ownership details are hard to track.
- Companies don’t always support the tokens.
But true democratization is possible. It requires legal rights, on-chain records, and company approval.This ensures tokens work like normal investments.
Tokenization works well elsewhere. Today, $3.2B in real estate is tokenized. By 2034, this is expected to hit $19.4B.Such growth shows its potential when done right—giving transparency and access.
Fixing private stocks means linking tokens to real legal rights. We also need unified markets, protections, and company backing. This turns them into powerful bridges between private and public markets. Currently, they’re just delaying the unavoidable evolution of finance.
To succeed, let’s focus on creating dependable structures.Uniting secondary markets with real liquidity builds trust. It brings efficiency to finance’s forgotten corners. By doing this, we secure tokenization’s credibility and unlock vast opportunities.
