devops199fan

Counterpoint: The companies that embrace full on tokenization of their capital and distribution in every way possible will have the lowest cost of capital on the planet, ceteris paribus. This is the finance 101 point that all the AML/KYC fanboys and “companies need to know exactly who their shareholders are” arguers miss. Many smart people have been telling me for years that public company CEOs will never embrace full on bearer securities. My response: “what kind of CEO demands a higher cost of capital “? Now, obviously we don’t want shady SPVs and a million different pass through exposure products with different rights that fragment liquidity. But that only means the securities regulators that embrace the most pure but least restricted and most bearer issuance formats will attract the most companies who in turn seek the lowest cost of capital. We happen to live in era of surging markets and abundant capital. But that won’t last forever, and if rates keep rising it’ll end sooner than many think. When that happens, a lot of CEOs will sing a very different tune about tokenization of their equity. We’ve already seen the sovereign debt version of this switch with stablecoins, products smart people told me for years no government will allow, “because KYC”. Now the biggest government states clearly they see bearer like fiat instruments as a path to lower cost of borrow. The same argument will come for privately issued securities in the form of equity and debt. Cost of capital is the final arbiter of which infrastructure and which product wins.