Experts in the field assert that the path ahead is clear: markets are transitioning to on-chain operations. Trading is always active, transactions are completed in mere seconds, and liquidity spans the globe. Tokenized assets have arrived. Traders can now speculate instantly on the price of major stocks and commodities, enjoying leverage as high as 25x, rather than waiting days for settlement.
Weekly volumes are reaching hundreds of millions, and the demand continues to increase. What motivates individuals to opt for tokenized markets? Most traders are indifferent to AGMs, dividends, or long-term custody; their primary focus is on speculating on price movements. From the same wallet. This represents true innovation: synthetic markets supported by tokenized assets. Derivatives rely on spot tokens for their liquidity. Similar to traditional finance, where futures and options traders use shares for hedging, on-chain perpetual contracts require tokenized spot markets to function.
Its sole offering in the crypto space is tokens. However, that overlooks the main issue. The true breakthrough lies in the trading framework: perpetual swaps, tokenized spot assets, and carry trades operating without permission. Using leverage allows for the transformation of modest capital into significant positions, all while avoiding expirations and the intricacies of option pricing. This explains the dominance of perps, the significance of liquidity pools, and the competition among new platforms to seize both spot and perp markets.
Envision possessing tokenized gold and simultaneously trading its perpetuals in a single location — streamlined, liquid, and worldwide. Tokenization goes beyond simply being “stocks on-chain.” It serves as a basis for innovative strategies, effective risk management, and enhanced capital efficiency. The essence of innovation lies in the market structure itself, whether you’re hedging, speculating, or arbitraging small spreads.