Exploring Tokenization of Public Equity: Innovations and Challenges
In this episode of Old Men New Money, Ali Davoudi discusses the emerging trend of tokenizing public company shares, illustrating how it could reshape global equity markets. He explains the difference between direct tokenization (as done by Galaxy Digital) and wrapped tokenization (as pursued by Backed and INX). Ali dives into the benefits, such as 24/7 trading and instant settlement, but also outlines challenges such as liquidity fragmentation and regulatory complexity. Through detailed examination, he balances the potential advantages against the current practical challenges and provides insights into the future of tokenized public equity, comparing it to the early internet era. Finally, he previews the next episode, which will focus on the potential of private equity tokenization.
00:00 Introduction to Tokenized Public Equity
00:45 Understanding Public Equity Tokenization
00:58 Direct vs. Wrapped Tokenization Models
01:58 Galaxy Digital's Innovative Move
03:26 The Wrapped Tokenization Model
04:52 Value Propositions of Tokenized Equity
06:27 Challenges of Tokenized Public Equity
07:57 Personal Views and Predictions
11:40 Lessons from Real World Asset Tokenization
13:02 Investor Guidance on Tokenized Public Equity
14:28 Connecting to Private Equity Tokenization
15:21 Closing Thoughts
