The Next Generational Wealth Opportunity
404: 12 Assets for Tokenization Exposure
Good morning — hope you guys didn’t overdo it on the tequila and queso last night.
Every decade or two the world sees new waves that end up making a handful of people incredibly wealthy — the internet, artificial intelligence, Bitcoin, the list goes on. The coming of those waves seems to be speeding up if you didn’t notice already, very often by the time you are comfortable enough or educated enough to partake, the fat gains are already gone.
Absolute fortunes were made by those who bet early on infrastructure and were in the know.
Today we are going to talk about Tokenization, which has the capacity to be a bigger financial opportunity than anything we’ve ever seen before, and it’s already well underway.
The internet made communication, publishing, and data sharing instant and global, digitizing information. Tokenization would be digitizing value itself not just stocks or crypto but the entire global financial system.
Yeah you read that correctly.
If the internet created the rails for global communication, tokenization is creating the rails for global finance, markets, and assets.
With Arb Letter I am in the business of trying to get you critical information before it hits the mainstream — this post is timely considering the following updates:
The SEC has announced the agenda and panelists for its May 12 roundtable on tokenization, while the DeFi roundtable has been rescheduled to June 9
SEC Commissioner Hester Peirce said this week that tokenization is a technology that could significantly transform financial markets.
Per Chainlink’s X account - representatives from Chainlink Labs
and J.P. Morgan joined at the Alpine Tech Forum to discuss scaling tokenization, unlocking interoperability, and open-source technology in financial infrastructure
In November 2024, as part of the Monetary Authority of Singapore’s Project Guardian, Swift, UBS Asset Management, and Chainlink completed a pilot demonstrating the settlement of tokenized fund subscriptions and redemptions using existing Swift infrastructure. This initiative bridges traditional payment systems with tokenized assets, facilitating broader adoption.
I don’t think I can emphasize enough the scale of this opportunity — those who end up positioning correctly before this goes mainstream will likely have the chance at immense upside and wealth. This is relevant to hedge fund portfolio managers, CEOs, financial analysts, business owners, lawyers, real estate brokers, investors, and even younger folks who are not yet in the workplace. This is an inevitability — not some high tech conjecture or maybe.
Boston Consulting Group in 2022 estimated there will be about $16 trillion in tokenized assets by 2030 — that’s roughly 10% of global GDP, and it is worth mentioning that was one of their more conservative estimates, their aggressive forecast is close to $70 trillion.
In 2023 Citi forecasted $4–5 trillion in tokenized securities alone by 2030, and up to $10 trillion in broader tokenized assets (including real estate, bonds, art, etc.). Some analysts forecast that tokenized assets could reach as much as $30 trillion by 2030, as everything from stocks and bonds to real estate and gold begins moving on-chain.
You can see below where the forecasts would fall compared to existing benchmark like the Global ETF Market, Crypto Market Cap, and Private Credit Market as of today (all at the bottom).
These are absurd numbers.
Today’s guide is a crash course to tokenization to give you guys an early edge on how you might want to position yourselves to take advantage of this technological inevitability. Bitcoin is one thing — but we’re talking about an opportunity of even larger size and scale, with relatively few people besides sophisticated institutions even contemplating what this means for economies, markets, and the digital future.
Many of you have DMed me over the last year or so asking if you are too late to the Bitcoin parade and the answer is no — but the truth is you’re probably not getting the 100 - 1000x multiples early early folks got moving forward. To do that you need to look forward and educate yourself on what is likely to come next.
Tokenization is likely to be one of those themes/phenomena.
Half the battle to getting in on mega trends before you’re priced out is timing (with the second being sizing) — the good news is, the lack of retail attention on crypto given volatile performance in 2025 is the perfect time to really begin to understand what opportunities tokenization is going to offer investors and how it’s probably going to change the face of finance forever. The TAM (total addressable market) is massive — tokenization doesn’t represent some small move forward — it’s a potential full-on restructuring of global finance, and it’s already happening as people argue over what the S&P 500 is going to do.
The bottom line is — tokenization, defi, and web3 are poised to offer one of the most sizeable wealth generation opportunities perhaps in the history of the world.
Let’s start with a basic overview of what tokenization is, we’ll take a look at which institutions are neck deep in this tech right now, and we will finish with the specific token/project plays that are positioned to surge as this narrative continues to grow.
No time to waste lords. If you’ve made it this far, you’re ahead of 99% of people.
“If you ask me what I think the most disruptive trend is going to be, it's tokenization. It's blockchain.”
— Jenny Johnson, Franklin Templeton CEO“Tokenization is the next generation for markets.”
— Larry Fink, BlackRock CEO“I definitely think that a year from now, the tokenization of real world assets will look very different, and use cases are going to be much more advanced.”
— Maredith Hannon, WisdomTree“Arbitrage Andy is a legend for highlighting the growing theme of tokenization and he’s going to make a lot of people very wealthy”
— Warren Buffet (probably)