Tokenization to Democratize 90% of US Investors

Tokenization, the process of converting real-world assets into digital tokens, is being hailed as a revolutionary tool for democratizing access to traditionally restricted investment opportunities. Johann Kerbrat, senior vice president and general manager of Robinhood Crypto, emphasized the significance of tokenization in enhancing financial inclusion during his speech at the Consensus 2025 event in Toronto.

Kerbrat highlighted that certain real-world assets, such as real estate and private equity, are currently accessible to only a small fraction of the population, approximately 10% in the US. He noted that investing in private equity requires accreditation, which limits participation to a select few. Similarly, owning property in high-demand areas like New York is financially out of reach for many. However, tokenization allows for fractional ownership, making these assets more accessible to a broader range of investors.

Robinhood, along with other investment firms such as BlackRock, Franklin Templeton, Apollo, and VanEck, has been exploring the potential of tokenizing real-world assets (RWA). This process involves converting physical assets into digital tokens that can be traded on blockchain platforms, thereby increasing liquidity and accessibility.

Kerbrat also discussed the evolution of stablecoins, which are cryptocurrencies pegged to the value of another asset, typically the US dollar. He predicted a surge in the number of stablecoins, with a shift towards more specialized tokens tailored to specific markets. This trend is driven by the growing demand for stablecoins that can facilitate cross-border transactions and other specialized financial activities.

The rise of stablecoins is part of a broader trend towards financial innovation, where digital assets are increasingly being used to enhance efficiency and accessibility in the financial system. Kerbrat's insights underscore the potential of tokenization to transform the investment landscape, making it more inclusive and dynamic.