Christopher Perkins, President and Managing Partner of investment company CoinFund, stated that tokenizing real-world assets (RWA) can democratize investment opportunities for retail traders that were previously inaccessible, similar to how the introduction of exchange-traded funds (ETFs) in 1993 expanded retail access to financial instruments.
Tokenizing RWAs provides a compelling use case for blockchain technology, enhancing capital turnover, enabling equity financing through asset fragmentation, creating new types of collateral for decentralized finance (DeFi) applications, fundamentally reforming the current capital formation structure, and allowing investors to access global capital markets democratically.