Tokenization Rails, Crypto-Native
Jarrod Watts@jarrodwatts
−9.5%
since Sep 29
The idea
I believe tokenized assets are about to go from demo to default, moving funds, loans, and stocks on-chain, and that crypto-native firms will capture most of the value as traditional finance is forced to hire them. So I lean hard into custody and exchange rails, stablecoin settlement, and companies already running tokenized products, with a smaller slice of incumbents building their own on-chain rails as ballast. I keep some cash on the side since this theme swings hard, and I'm holding for years to let those swings play out rather than trading them.
What it owns
- When funds and bonds move on-chain, regulated custodians and trading platforms become essential infrastructure that traditional finance will rely on. · Coinbase GlobalIt custodies assets for major issuers and operates the exchange rails tokenized products require, making it the crypto-native firm traditional finance typically calls first., Galaxy DigitalIt serves as the crypto-native bank that traditional finance uses to trade, lend, and tokenize without building internal capabilities., BullishIt operates an exchange designed specifically for institutional traders, capturing the flow of institutional assets moving on-chain., Gemini Space StationIt provides regulated custody designed to meet traditional finance compliance requirements, a necessary step before institutions hold tokenized assets.31%
- These companies already operate real tokenized products at scale, not pilots, proving the infrastructure can handle live volume. · Robinhood MarketsIt already ships tokenized stocks to real customers in production, demonstrating that tokenized equities work beyond pilot programs., Figure Technology SolutionsIt runs loans on blockchain at genuine scale today, showing that tokenization enables faster and cheaper settlement than legacy systems., Exodus MovementIt tokenized its own shares and operates a crypto wallet, serving as both a beneficiary and proof point for tokenized equity adoption., eToro GroupIt brings tokenized assets to retail investors, widening the addressable market as tokenized products reach everyday traders.22%
- Tokenized assets need regulated digital dollars to settle transactions, making the money layer a revenue point on every trade. · Circle Internet GroupIt issues the leading regulated stablecoin used to settle tokenized transactions, positioning it as the default money layer as on-chain activity grows., PayPal HoldingsIt deployed a stablecoin to hundreds of millions of users, demonstrating consumer-scale productive use of tokenized money., Block IncIt builds payment rails where crypto actually gets spent in real transactions, focusing on productive use rather than speculation.20%
- Established financial infrastructure firms are building on-chain capabilities, providing stability if crypto sentiment weakens. · BlackRockIts tokenized fund is among the largest on-chain products, proving institutional demand for digital assets while providing take stability., CME GroupIt operates the regulated on-ramp where institutions already trade crypto derivatives, growing as traditional capital enters digital assets., VisaIt pilots stablecoin settlement across its network, positioned to win even if crypto-native platforms face headwinds., Intercontinental ExchangeIt owns exchange infrastructure traditional finance trusts and is building on-chain versions, providing steadier ballast for tokenization.18%
- Cash10%