Author's viewpoint: Nansen CEO Alex Svanevik
Since the first Initial Coin Offering (ICO) in 2017 and the rise of early blockchain projects, tokenization has become a hot topic in modern finance.
Currently, the most discussed topic is bringing public equity on-chain for fragmented ownership and round-the-clock trading. However, the equity market is already efficient, and the gains from blockchain technology are limited. The real transformation lies in markets where efficiency is still low, such as the private equity market, which remains opaque, hard to access, and costly.
Currently, high-growth private companies are mainly open to accredited investors, leaving ordinary investors missing out on early investment opportunities. In the past, companies often went public at an earlier stage, but many companies now wait until they are valued at billions to go public, excluding investors.
Tokenization can break this situation, helping not only investors but also providing companies with a broader global financing channel, simplifying asset holding and transaction processes through blockchain technology. At the same time, it offers more liquidity for early investors and employees without having to wait for an IPO.
Risks and Opportunities
By 2025, the private equity market is expected to reach $15 trillion, surpassing the public stock market. Given that it is generally excluded by current regulations, the competitive advantage of tokenization is significant, requiring only appropriate information disclosure and regulation.
Tokenization is not about cutting protections, but rather emphasizes transparency and rational participation. Tokenization can provide more than just simple efficiency improvements; it significantly expands financial inclusion, allowing ordinary people to support the companies they believe in.
Tokenized private equity is expected to change the participation rules, breaking down the barriers that only wealthy accredited investors can afford to take risks, opening new global markets for companies and investors.
Author's viewpoint: Nansen CEO Alex Svanevik.
This article is for general information only and does not constitute legal or investment advice. The views expressed in this article are solely those of the author.
