according to materials from the site - By Cointelegraph
According to Christopher Perkins, president and managing partner of the investment firm CoinFund, real asset tokens (RWA) can simplify access to investments that were previously unavailable to retail traders, similar to how exchange-traded funds (ETFs) expanded retail access to financial instruments since their inception in 1993.
"I believe that tokens are the new ETFs," Perkins said in an interview with Cointelegraph. The executive noted that tokenized RWAs, trading around the clock on globally accessible markets, reduce the information asymmetry that usually prevented retail investors from participating in private placements under existing accreditation laws. He added:
"Ordinary people cannot access private markets. They are private by nature. And if you look at the situation in the US today, about 81% of companies — according to BlackRock statistics — with revenue of $100 million are private.
Essentially, this leaves ordinary people with very little access to the most interesting, most innovative companies," he continued.
Tokenized RWAs offer an attractive use case for blockchain technology, which can increase capital turnover, provide financing through asset fractionalization, create new types of collateral for decentralized finance (DeFi) applications, rethink existing capital formation structures, and democratize investor access to global capital markets.
"Our public markets are currently completely broken. The system is not functioning as intended. The number of public companies is significantly decreasing," Perkins stated in an interview with Cointelegraph.
According to the executive, the number of public companies has decreased by about 50% since the 1990s. "We are raising less money in public markets, which makes no sense at all," he added.
The brokerage platform Robinhood has recently launched trading of tokenized stocks for European clients. As part of the promotion of tokenized stocks, the platform announced the distribution of a small number of tokens from OpenAI and SpaceX, focused on 'private equity'.
The tokens provide retail investors access to the stock prices of the respective private companies but do not grant a stake in the actual enterprises or voting rights.
OpenAI immediately warned potential token holders that the tokens do not represent a stake in the AI development company and that the company has not approved these tokens.
Despite this, private companies continue to show interest in listing on the tokenized platform, according to Robinhood CEO Vlad Tenev.
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