Thanks for an interesting read, we're also really excited about the prospect of real-world asset tokenisation and are seeing a lot more financial institutions taking the plunge with this, such as HSBC and in our client activities. One concern we have with tokenisation is fractionalisation - for instance, putting a piece of real estate on chain may ultimately lead to the lack of pure ownership of the real estate because everybody has a piece of the pie, and therefore deter people from tokenising their own asset. Do you have any view on this?
Hey, that's a great question, and I'm happy to hear you like the article.
I would look at it similarly to public and private markets. Some companies decide to go public to get additional capital and growth, but the downside is that there are many shareholders now, which you as a company need to serve, but then the concentration happens on the fund side / ETFs, etc., where you want to own piece of the market, not any particular company.
Similar, but different, can be the DAO route, where you launch a governance token, which will bring more human and financial capital to a DAO but can make it slightly less nimble.
On the other hand, some companies choose to stay private because ownership/sovereignty and efficiency are things they want to keep.
So if I look at the real estate - some people would like to have their own house fully owned, and some would like to have a piece of the market or a piece of the house. And I believe real estate will look a bit more like a stock market in the future.
Hey,
Thanks for an interesting read, we're also really excited about the prospect of real-world asset tokenisation and are seeing a lot more financial institutions taking the plunge with this, such as HSBC and in our client activities. One concern we have with tokenisation is fractionalisation - for instance, putting a piece of real estate on chain may ultimately lead to the lack of pure ownership of the real estate because everybody has a piece of the pie, and therefore deter people from tokenising their own asset. Do you have any view on this?
Hey, that's a great question, and I'm happy to hear you like the article.
I would look at it similarly to public and private markets. Some companies decide to go public to get additional capital and growth, but the downside is that there are many shareholders now, which you as a company need to serve, but then the concentration happens on the fund side / ETFs, etc., where you want to own piece of the market, not any particular company.
Similar, but different, can be the DAO route, where you launch a governance token, which will bring more human and financial capital to a DAO but can make it slightly less nimble.
On the other hand, some companies choose to stay private because ownership/sovereignty and efficiency are things they want to keep.
So if I look at the real estate - some people would like to have their own house fully owned, and some would like to have a piece of the market or a piece of the house. And I believe real estate will look a bit more like a stock market in the future.
Happy to chat more about it
Great, that analogy makes sense. Thank you