The Financial Revolution Beyond Time and Space: The Rise of On-Chain Assets

After working in the cryptocurrency field for many years, we often view problems from a perspective unique to the industry. This perspective may cause us to overlook some broader trends and opportunities.

For example, when it comes to stock tokenization, many people may feel that it lacks value. After all, compared to the volatile crypto assets, the daily fluctuations of stocks are only 1-3%, which seems to lack attraction. But if we think from another perspective: perhaps it's not that cryptocurrencies need stocks, but that stocks need crypto technology?

Imagine if you were the CEO of a company about to go public, facing two choices: one is the traditional stock market, which trades for 7-8 hours a day, closed on weekends and holidays, and only open to specific regions. The other is the cryptocurrency market, which operates around the clock and is open to the global audience. Which one would you choose?

Furthermore, if your stock tokens can not only be traded but also collateralized for lending in DeFi protocols, and even packaged into various yield products, this will bring immense liquidity and use cases. For publicly listed companies, this around-the-clock, borderless trading environment has an irresistible appeal.

Although there have been previous attempts at tokenizing stocks, none have succeeded. Now the situation has changed: the crypto market is gradually maturing, the policy environment has become more favorable, and traditional financial giants are also starting to enter the space. This creates favorable conditions for stock tokenization.

Currently, there are two main types of institutions driving this trend: one is emerging fintech companies, such as a well-known online brokerage and mainstream cryptocurrency exchanges; the other is traditional financial giants, including the world's largest asset management firms and top investment banks. The latter control vast amounts of capital, listing resources, and institutional clients, and their participation will have far-reaching effects.

For these financial giants, blockchain technology offers a rare opportunity to dominate in emerging markets. By transferring traditional stocks on-chain, they can build exclusive blockchains, launch innovative financial products, and create their own trading platforms, thereby gaining more pricing power and market share.

On-chain finance has significant advantages over traditional finance: round-the-clock borderless transactions, extremely low accounting and settlement costs, real-time settlement, etc. It is estimated that the capital efficiency of on-chain finance could be 27 times that of traditional finance. This enormous improvement in efficiency is the fundamental reason why financial giants are rushing to establish a presence in this area.

We can refer to this trend as "the ultra-temporal asset movement." It encompasses not only stock tokenization but also various assets such as fiat-backed stablecoins and bond tokens. This movement is building a global, ever-evolving parallel financial universe.

Of course, this process still faces many challenges, such as incomplete token rights, insufficient liquidity, and unclear regulations. However, with the participation of more funds and institutions, these issues are expected to be gradually resolved.

For professionals in the cryptocurrency industry, this transformation brings new opportunities. Mainstream public chains that support smart contracts, such as Ethereum and Solana, may benefit. Existing leading DeFi protocols are also expected to expand their application scenarios. At the same time, new financial protocols specifically targeting stock tokens may emerge.

In contrast, small cryptocurrencies that lack practical applications may gradually lose market presence. Bitcoin, as digital gold, will still be the value anchor of the on-chain financial world.

This transcendent asset movement is changing the financial landscape. As industry participants, we should think about how to seize this opportunity and secure a place in the emerging on-chain financial world.