He added, “What’s happening right now is the largest infrastructure upgrade in capital markets since the shift to electronic trading thirty years ago.”
Historically, similar infrastructure changes produced measurable expansion. The shift to electronic trading in the 1990s reduced commissions, tightened spreads, and increased participation, leading to significantly larger markets. Rosenthal warned:
“But most people won’t recognize this shift until it’s already done.”
Regulation and Market Structure Drive AdoptionExisting market structures also contribute to the shift. Traditional transactions involve layered intermediaries, including brokers, custodians, and clearing entities, each extracting fees while capital remains temporarily locked during settlement cycles. Rosenthal noted:
“This is looking more and more like a migration, not a series of isolated experiments.”
FAQ 🧭 Why are institutions moving to blockchain infrastructure? They aim to increase transaction speed, reduce costs, and unlock new liquidity across global markets. How does tokenization impact market liquidity? It enables fractional ownership and faster settlement, expanding participation and capital flow. What role do regulators play in this transition? Clearer frameworks are encouraging large institutions to deploy blockchain-based financial systems. What could this mean for investors long term? Investors may gain broader access, faster execution, and exposure to more efficient markets.
