So, here's the deal: starting in early 2025, something pretty interesting is happening in the financial markets. The market capitalization of equity tokens suddenly surged nearly 3.5 times. This isn't a coincidence—there's a major movement happening behind the scenes.

Just look, the global stock market is already massive, worth over $150 trillion. But the system is still outdated. Trading is only possible five days a week, settlement still relies heavily on intermediaries, and access to high-growth companies? Very limited. Only a handful of institutional investors can get in.

Now, tokenization is starting to change everything. NYSE, Nasdaq, even DTCC—these major institutions are already developing tokenized stock infrastructure. Why? Because blockchain technology can solve three problems at once.

First, 24/7 trading without stopping. Currently, only about 11% of US stock trading happens outside regular hours. But a market that operates around the clock can process new information faster and more in line with global investors—since about 15% of American stocks are held by foreign investors.

Second, ownership becomes more transparent and programmable. So far, stock ownership is recorded among many intermediaries—brokers, clearinghouses, central depositories. With tokenization, ownership can be tracked directly on the blockchain. This means owners can directly use assets as collateral for loans, add them to liquidity pools, or create more complex financial structures. In traditional markets, all that requires many intermediaries and costs. This efficiency could save the industry $5 to $10 billion annually.

Third, and most game-changing, access to private markets becomes more open. Currently, to invest in private companies, you need to be a qualified investor—minimum net worth of $1 million, or an annual income of $200,000. Private companies also have to limit the number of shareholders, with a maximum of 2,000 registered shareholders or 500 non-qualified investors before they must go public.

This means most investors basically don’t have access to good companies until they IPO. But tokenization can change that. Robinhood recently launched tokenized shares of OpenAI and SpaceX for qualified users in Europe—giving retail investors exposure to two of the most sought-after companies in the world.

In fact, this is an example of how venture capital firms and traditional institutional investors are starting to lose their gatekeeping power. The common SPV structure allows token issuers to provide investment access to private companies that were previously exclusive to venture capital and institutional money. But there’s a catch—these tokens don’t always represent direct ownership. Robinhood’s SpaceX tokens, for example, represent claims on economic rights against the intermediary entity, not direct shares. This means the rights they represent can vary depending on the issuer. Preferred shares vs. common shares? Not clear. Conversion rights? Also unclear. Without standardization, investors find it hard to compare or price tokens accurately.

But despite this structural ambiguity, demand remains high. Surveys show 90% of Americans are willing to allocate part of their retirement savings to private assets, especially among Gen Z and millennials. That’s why many companies are staying private longer—they can access capital without needing an IPO.

So, this momentum in equity tokenization is actually a big test: can blockchain technology scale from payment layers to ownership of financial assets? Stablecoins have already proven the concept—growing 10x in the last five years. Equity tokens are now their turn. If successful, this isn’t just about the stock market—it’s about how ownership and financial access will be restructured in the digital age.