tl;dr
Pantera Capital highlights a major shift as tokenization moves from theory to reality, comparing its rise to the early growth of ETFs in the 1990s. Franklin Bi of Pantera identifies four key milestones signaling tokenization's tipping point: daily on-chain equity volume exceeding $1 billion, tokeniz...
Crypto investment giant Pantera Capital highlights a significant “great on-chain migration” as tokenization transitions from a theoretical concept to tangible reality. Franklin Bi, a general partner at Pantera, draws a parallel between the rise of tokenized assets today and the early growth of ETFs (exchange-traded funds) back in the 1990s.
Bi recalls the launch of the first U.S. equity ETF, SPY, which surpassed $1 billion in assets under management within its first year. However, he emphasizes that the true breakthrough came when ETF trading volumes consistently matched and eventually exceeded those of mutual funds. This shift altered the market structure and transformed investor behavior—a change Pantera believes tokenization will replicate in the near future.
The investor outlines four looming milestones that will signal tokenization’s tipping point: daily on-chain equity volume surpassing $1 billion, tokenized equity assets under management exceeding $100 billion, a major public company’s liquidity on-chain overtaking its traditional exchange, and a global IPO bypassing New York stock exchanges entirely in favor of issuing shares directly on-chain.
Bi predicts that once these markers are hit, tokenization’s “ETF moment” will become evident, revealing a seismic shift in capital markets. Early adopters today focus on creating improved infrastructure, but the broader narrative is about how blockchains will soon reign as the primary venue for capital formation, price discovery, and value transfer—becoming the ultimate destination for both issuers and investors alike.