David Mercer

Tokenization is this millennium's version of derivatives and will drive a similar massive uptick in capital markets. All securities will eventually be tokenized, breaking down friction, enabling fractional ownership, and underpinned by stablecoins and digital money. Institutional enablement is nearly complete with custody, market access, and clearing in place. Banks are planning to offer digital assets, with 60% expecting to trade them by end-2027. A wall of institutional money is waiting only for regulatory clarity. Digital assets are resilient, will grow from 1-2% to around 10% of traditional finance by the end of this decade, and then experience S-curve adoption.

Tokenization is this millennium's version of derivatives and will drive a similar massive uptick in capital markets. All securities will eventually be tokenized, breaking down friction, enabling fractional ownership, and underpinned by stablecoins and digital money. Institutional enablement is nearly complete with custody, market access, and clearing in place. Banks are planning to offer digital assets, with 60% expecting to trade them by end-2027. A wall of institutional money is waiting only for regulatory clarity. Digital assets are resilient, will grow from 1-2% to around 10% of traditional finance by the end of this decade, and then experience S-curve adoption.