Tokenisation seen widening access to global assets

Digital asset markets received renewed attention after Coinbase chief executive Brian Armstrong argued that tokenisation of financial assets could remove entrenched inequities in global finance by widening participation in investment markets and lowering structural barriers that historically limited access.

Armstrong, speaking in comments circulated across financial and crypto industry platforms, said tokenisation could “strip away a huge amount of unfairness from the system by increasing asset access worldwide.” The statement reflects a growing belief among technology firms and financial institutions that blockchain-based tokenisation could reshape how assets are issued, traded and owned.

Tokenisation refers to the conversion of real-world assets such as equities, bonds, real estate, commodities or artwork into digital tokens recorded on a blockchain. Each token represents a fractional share of an underlying asset, allowing ownership to be divided into smaller units that can be traded more easily through digital platforms.

Industry analysts say such systems could broaden participation in financial markets by allowing individuals with modest capital to buy fractions of assets that were previously available mainly to large investors. Real estate projects, venture capital funds and infrastructure investments are among the sectors where tokenised structures are being explored.

Armstrong’s remarks come as several global banks and asset managers accelerate pilot programmes in tokenised securities and digital asset infrastructure. Financial groups including JPMorgan, HSBC and Standard Chartered have tested blockchain platforms for bond issuance, settlement and collateral management, arguing that distributed ledger systems could reduce operational costs and settlement delays.

Market participants say tokenisation may also improve transparency and traceability in asset ownership. Blockchain systems record transactions in tamper-resistant ledgers, allowing participants to verify ownership histories and reducing the need for multiple intermediaries involved in traditional clearing and settlement processes.

Supporters of the technology argue that these efficiencies could narrow the gap between institutional and retail investors. By lowering minimum investment thresholds and enabling cross-border access to assets, tokenised markets may provide new opportunities for individuals in developing economies who historically faced barriers to global capital markets.

Armstrong has long promoted digital assets as tools for expanding financial inclusion. Coinbase, one of the largest cryptocurrency exchanges, has positioned itself as a gateway to decentralised finance, providing trading, custody and infrastructure services for blockchain-based assets. The company has also supported regulatory frameworks aimed at legitimising digital asset markets in major economies.

The tokenisation concept has gained momentum as regulators and financial institutions search for ways to integrate blockchain technology into existing financial systems without abandoning established safeguards. Governments in several jurisdictions have launched regulatory sandboxes or pilot frameworks for tokenised securities, allowing financial firms to test new models under supervision.

European regulators, for example, introduced a pilot regime for distributed ledger market infrastructures to support experimentation with tokenised securities trading and settlement. Authorities in Singapore, the United Arab Emirates and Hong Kong have also explored frameworks that permit tokenised asset platforms to operate under financial oversight.

Research by global consulting firms indicates that tokenised assets could grow significantly over the coming decade. Analysts estimate that trillions of dollars’ worth of financial instruments may migrate to blockchain-based systems if regulatory clarity improves and institutional adoption continues.

Real estate has emerged as a prominent use case for tokenisation. Developers and investment firms have experimented with digital tokens representing shares in property portfolios, allowing investors to purchase fractional stakes in commercial or residential assets. Proponents argue that such structures could unlock liquidity in traditionally illiquid sectors.

Private markets are also attracting attention from tokenisation advocates. Venture capital funds and private equity vehicles often require large minimum investments and long holding periods. Tokenised representations of fund shares could allow smaller investors to participate while enabling secondary trading that improves liquidity.

Despite the enthusiasm, sceptics caution that tokenisation alone cannot solve deeper structural inequalities in global finance. Legal frameworks governing ownership rights, investor protection and taxation remain complex, particularly when digital tokens represent assets located in different jurisdictions.

Financial regulators have also expressed concerns about market stability and consumer protection. Tokenised markets must address issues including cybersecurity risks, identity verification and compliance with anti-money-laundering rules.

Volatility in cryptocurrency markets has added another layer of scrutiny. Digital asset exchanges have faced regulatory enforcement actions and market shocks over the past several years, prompting authorities to emphasise robust safeguards before broader integration with traditional finance.

Armstrong’s comments nevertheless highlight the persistent belief among technology leaders that blockchain infrastructure could transform capital markets. By enabling fractional ownership and continuous settlement, tokenised systems promise to challenge traditional gatekeeping structures that determine who can participate in global investment opportunities.

Large financial institutions appear increasingly willing to explore that possibility. Investment banks have conducted pilot projects issuing tokenised bonds and funds on blockchain networks, while asset managers are studying whether tokenised structures could streamline distribution and reduce administrative costs.

Digital asset platforms are positioning themselves as infrastructure providers for this transition. Exchanges such as Coinbase are expanding custody services, blockchain development tools and institutional trading capabilities in anticipation of greater tokenised asset activity.