'This Is a Better Version of a Stock, Period,' Says Cutler

Summary

Alex Cutler argues that Coinbase's tokenized Apple, Nvidia, and Meta shares are not just tokenized equities but a better version of the underlying stocks because DeFi programmability and composability remove expensive brokerage intermediaries like Interactive Brokers. He contrasts onchain spot pools with perpetual markets and RFQs, saying spot pools are the real market and will become the deepest, richest foundation for tokenized stocks and FX. He also points to early ecosystem builders such as Arcadia and Bitwise as evidence of composability.

• Tokenized stocks offer programmability, composability, and direct onchain access.
• Interactive Brokers is cited as an expensive middleman with a 77% profit margin.
• Onchain execution has already beaten the traditional incumbent at times.
• Spot pools are described as the actual market versus derivatives or RFQs.
• Anyone can provide liquidity or market-make 24/7/365.
• Early builders include Arcadia with leveraged LP positions and Bitwise with an automated token portfolio.
• Cutler expects these spot markets to become the deepest and richest, underpinning tokenized equities and FX.