Newsletter Edition: THE CASE FOR TOKENIZED STOCKS Equities onchain are positive EV. The Wall Street Journal recently included an ad throwing shade on tokenized stocks. Won’t rehash all their arguments, instead, why I think tokenized stocks are a good thing. In my view, tokenized stocks have three main benefits. - They enable 24/7 trading, allow you to use your equities as currency - Give people without access to traditional financial rails the opportunity to invest in US markets, - This grows American influence and market caps in the process. One, tokenized stocks enable 24/7 trading. Since blockchains are always on, tokenized equities can be bought, sold, or transferred at any time. Naturally, this has several key benefits. Most prominently, you have more consistent access to your assets than when they sit on a Wall Street exchange. Need cash quickly? You can sell whenever you like. A massive war breaks out over the weekend and you want to derisk? Sell on Saturday afternoon. Hear a compelling argument for why you should own part of a company and don’t want to wait? Buy it onchain on a Sunday morning. Several Wall Street exchanges have expressed interest in going 24/7, or close to it, but these features haven't been fully rolled out. When they do, it may weaken the argument for tokenized stocks. In the meantime, blockchain markets offer a way to trade equities outside traditional market hours. Two, you can use your equities as currency. Imagine you go to buy coffee. You’re smart, so instead of keeping your net worth in cash, you keep it in the S&P 500. Under the current system, you need to sell some of your holdings to get cash to buy things like coffee. You buy a coffee, and then the owner takes that money and puts it into the S&P because he doesn’t want to lose 3% a year to inflation and prefers to keep his money in equities. Fiat currency is an unnecessary intermediary in this scenario. Tokenized stocks could allow you to transact directly with your equities, assuming merchants adopt the necessary infrastructure. Three, tokenized stocks allow people outside traditional financial rails to invest in US markets. This is helpful in two ways. - For one, it expands US markets by allowing more capital to flow into US companies. - On the other side of the coin, it gives people who previously lacked access to US markets the opportunity to invest and grow their wealth. There are certainly flaws with tokenized equities, but I think the juice is worth the squeeze. Words: @alphadawgcrypto