Why tokenization is an ETF-style market structure revolution
ETFs did more than wrap existing assets: creation/redemption and arbitrage turned them into a market-structure innovation that linked primary and secondary markets. Tokenization works the same way. A tokenized asset can be minted or burned against underlying holdings, and arbitrage should pull the token price back toward net asset value when it trades above or below the basket. The token is the liquid wrapper; the underlying assets are the economic anchor. Tokenized markets can also improve transparency by showing issuance, transfers, and supply in real time. They can trade continuously even when underlying markets are closed, letting prices incorporate new information across time zones. Like cross-border ETFs today, tokenized assets may reflect expected next-open values using related instruments and market signals. The main question is not novelty, but whether tokenization improves efficiency, access, and robustness.
