Tokenization — the process of turning real-world assets into blockchain-based tokens — has been a buzzword in financial circles for nearly a decade. Early use cases, what we might call “Tokenization 1.0,” focused on assets such as real estate, commodities, fine art, and even music royalties. These experiments proved the technology works: assets could be fractionalized, transferred globally in seconds, and recorded on immutable ledgers.

However, these early cases were niche. Liquidity was often low, regulatory frameworks were unclear, and the investor pool was mostly limited to crypto-savvy participants.

Now, Tokenization 2.0 is emerging — and it’s targeting high-impact, mainstream applications. Two developments are front and centre:

1. Private company shares becoming tradable on blockchain platforms
2. Stablecoins gaining regulatory legitimacy and corporate adoption following the GENIUS Act

Together, these trends could reshape how capital is raised, traded, and settled — bridging the gap between Wall Street and Web3.

Private Shares, Public Access — On the Blockchain

Historically, equity in high-growth private companies like OpenAI, SpaceX, or Stripe was reserved for venture capitalists, early employees, and institutional investors. Retail participants could only access these companies at IPO stage — often missing the most significant growth phase.

That’s changing. Platforms such as Robinhood and Jarsy are now exploring tokenized versions of private shares. This allows fractional ownership — meaning investors can buy a small portion of a share — and facilitates peer-to-peer trading on blockchain networks.

“Tokenizing private equity isn’t just about democratization — it’s about creating entirely new liquidity pools for illiquid assets,” notes Sarah Mitchell, a fintech analyst at GlobalData.

Potential Advantages

• Democratized access – Smaller investors can participate in growth stories once reserved for the ultra-wealthy.
• Liquidity in illiquid markets – Fractionalized tokens can be traded instantly without waiting for an IPO or acquisition.
• Global reach – Blockchain infrastructure enables cross-border participation, bypassing many traditional brokerage restrictions.

Risks and Challenges

• Regulatory ambiguity – In most jurisdictions, tokenized private shares will be treated as securities, requiring issuers to comply with strict regulations.
• Valuation opacity – Without quarterly public disclosures, determining a fair token price is difficult.
• Liquidity illusion – While fractionalization increases tradability, meaningful liquidity still depends on market demand and regulatory access.

Global Moves in Tokenized Equity

While the U.S. and Europe are experimenting cautiously, Asia and the Middle East are pushing harder:

• Singapore: The Monetary Authority of Singapore (MAS) recently ran a pilot for tokenized shares of Temasek-backed companies, using smart contracts for settlement.
• Abu Dhabi Global Market (ADGM): Actively promoting tokenized private placements under its Digital Securities framework.
• Hong Kong: Licensed exchanges such as OSL are looking to list tokenized private equity alongside traditional securities.

This cross-border experimentation could pave the way for interoperable global token markets, where an investor could buy a fraction of a Japanese AI startup’s equity, settle in seconds, and receive dividends via a stablecoin.

Stablecoins Enter the Regulatory Spotlight

On July 18, 2025, the GENIUS Act became U.S. law, creating the most comprehensive stablecoin regulatory framework to date. It mandates:

• 1:1 asset backing in USD or low-risk equivalents
• Dual oversight between federal and state regulators
• Independent, regular audits
• Restrictions on interest-bearing stablecoins

For years, stablecoins like USDT and USDC operated in a legal grey area. The GENIUS Act removes much of that uncertainty, setting a clear compliance path for issuers.

Already, Bank of America, Citigroup, Amazon, and Walmart are reportedly exploring their own USD-backed stablecoins. For corporates, stablecoins could:

• Reduce payment settlement times from days to seconds
• Lower transaction fees compared to card networks
• Create closed-loop payment ecosystems that retain customer spend

Beyond the U.S.: Global Stablecoin Momentum

The GENIUS Act may set a precedent for other markets:

• EU: Under MiCA (Markets in Crypto Assets Regulation), euro-backed stablecoins must meet strict reserve and transparency requirements.
• Japan: Legalized stablecoin issuance by banks and licensed trust companies in 2023.
• Nigeria: Exploring a naira-backed stablecoin to complement its eNaira CBDC.

This global push towards compliant stablecoins is setting the stage for widespread adoption in cross-border trade, remittances, and DeFi integration.

The Intersection: Tokenized Shares Meet Stablecoin Settlement

While private share tokenization and corporate stablecoin launches might seem unrelated, they are mutually reinforcing trends:

• Tokenized private shares require stable, regulated settlement assets — and compliant stablecoins are the ideal choice.
• Stablecoins benefit from having high-value assets traded on-chain, driving transaction volume and adoption.

Imagine this:
You log into a tokenized asset platform, purchase $500 worth of pre-IPO SpaceX shares using Walmart’s USD-backed stablecoin, and receive tokenized dividends in the same stablecoin, spendable instantly on groceries or e-commerce.

This integration could mark the beginning of a fully on-chain capital and payment market.

Infrastructure Is Catching Up

A surge in infrastructure development is helping make Tokenization 2.0 viable:

• Stripe is building Tempo, a payments-focused Layer-1 blockchain, in partnership with Paradigm.
• Chainlink is integrating advanced proof-of-reserve and proof-of-liquidity data feeds for tokenized asset platforms.
• Ripple’s $200M acquisition of Canadian fintech Rail will expand stablecoin settlement solutions for banks and corporates.

Risks to Watch

• Regulatory Overlap – Tokenized equity may fall under securities law, while stablecoins are governed by payment regulations. Navigating both simultaneously will require sophisticated compliance strategies.
• Security Threats – The recent 51% attack on Monero highlights vulnerabilities even in long-standing blockchain networks.
• Adoption Lag – Institutional adoption will depend on risk frameworks, custody solutions, and interoperability with existing systems.

Investor Takeaways

For retail investors: Tokenization could open previously inaccessible investment classes, but due diligence is crucial — especially around platform credibility and regulatory status.

For corporates: Stablecoins offer a pathway to cut transaction costs, accelerate settlements, and build loyalty ecosystems — but require upfront compliance investment.

For regulators: The challenge will be balancing innovation with consumer protection and systemic stability.

Looking Ahead — 2025 to 2030

Analysts forecast that tokenized assets could exceed $10 trillion in market value by 2030, driven by:

• Institutional adoption of tokenized bonds, equities, and funds
• Corporate stablecoin issuance replacing traditional B2B payment rails
• Cross-chain interoperability enabling multi-asset, multi-currency markets

If Tokenization 2.0 succeeds, we could see IPO-grade assets trading 24/7 with near-instant settlement, audited reserves, and transparent governance — a far cry from today’s slow, fragmented markets.

The next chapter in finance is being written now — and it’s on-chain.