Netcapital's (NCPL) Strategic Pivot to Tokenized Assets: Assessing the Long-Term Investment Potential in a Blockchain-Driven Future

Netcapital (NCPL) has embarked on an ambitious strategic pivot toward tokenized assets and blockchain integration, positioning itself at the intersection of fintech and digital finance. This shift, while promising in the context of a rapidly expanding tokenized assets market, raises critical questions about the company's long-term viability and ability to execute its vision amid significant financial headwinds.

Market Context: A Booming Tokenized Assets Landscape

The global tokenized real-world assets (RWAs) market is projected to surge from $297.71 billion in 2024 to $9.43 trillion by 2030, driven by blockchain innovation. Stablecoins, a foundational component of this ecosystem, are also gaining traction, with their market value expected to rise from $282 billion in September 2025 to $1.9 trillion by 2030 following the U.S. GENIUS Act's passage. Tokenized financial assets, including bonds and alternative investments, are transitioning from pilot projects to scalable solutions, with McKinsey estimating a $2 trillion market capitalization by 2030. These trends underscore a transformative shift in financial infrastructure, creating opportunities for firms like NCPL to leverage blockchain for liquidity, cost reduction, and revenue diversification.

NCPL's Strategic Rationale: Blockchain as a Growth Engine

Netcapital's pivot is anchored in its acquisition of Rivetz, a firm specializing in hardware-based cybersecurity and blockchain services, which provides the technological backbone for secure tokenized asset creation. CEO Rich Wheeless has emphasized the company's intent to integrate blockchain into its fintech platform, enabling small businesses to incorporate crypto and tokenized assets into their capital-raising strategies. The company's broker-dealer arm and existing platform-serving 100,000 U.S. investors and having funded over 300 companies-position it to capitalize on high-margin utility token sales and tokenized securities.

However, the transition is not without risks. NCPL reported a 70% year-over-year revenue decline in Q2 2026, dropping to $51,076 from $170,528, as the pivot disrupts short-term performance. Operating losses of $2.1 million in the same period highlight the financial strain of this strategic shift. Investors have questioned the rationale behind the Rivetz acquisition, which involved a large share issuance, and raised concerns about workforce alignment with current revenue levels.

Financial Constraints and Execution Risks

NCPL's balance sheet reveals a precarious cash position: as of October 31, 2025, the company held $1.7 million in cash and cash equivalents, with a burn rate of $2.1 million per quarter. At this rate, the firm faces a cash runway of less than one quarter without additional funding or revenue generation. While management has prioritized strategic execution over short-term financial targets, the absence of recognized revenue from its broker-dealer activities and the "lumpy" performance of its secondary trading platform (in beta with Templum ATS) underscore execution risks.

The company's long-term success hinges on its ability to monetize blockchain-driven initiatives. Tokenized assets, particularly in sustainable finance (e.g., carbon credits) and treasuries, represent high-growth segments, but NCPL must navigate fragmented regulatory frameworks and interoperability challenges. Secure custody solutions and fraud prevention will also be critical to maintaining investor trust in its platform.

Balancing Opportunity and Risk

While NCPL's pivot aligns with a $9.43 trillion market opportunity, its financial health and operational execution remain under scrutiny. The tokenized assets sector's growth is contingent on regulatory harmonization and institutional adoption-factors beyond NCPL's control. For the company to succeed, it must demonstrate tangible progress in generating high-margin revenue from blockchain initiatives, such as utility tokens or tokenized securities, while optimizing costs and extending its cash runway.

Investors should monitor key metrics: the pace of regulatory approvals for its secondary trading platform, the scalability of Rivetz's technology, and the company's ability to attract institutional clients. A successful pivot could position NCPL as a niche player in the tokenized asset ecosystem, but the path to profitability remains fraught with execution risks and liquidity constraints.

Conclusion

Netcapital's strategic pivot to tokenized assets taps into a transformative market, but its long-term investment potential depends on overcoming immediate financial challenges and proving its ability to execute. While the blockchain-driven vision is compelling, the company's current cash burn, declining revenues, and unproven monetization strategies necessitate a cautious approach. For NCPL to thrive, it must balance innovation with fiscal discipline-a delicate act in a sector where the future is promising but far from guaranteed.