Tokenization is reshaping how value is created and traded, argues Solana Foundation president

Tokenization is more than just a way to turn assets into digital tokens—it represents a major shift in how value is created, owned, financed, and moved, according to Lily Liu, president of the Solana Foundation.

In an opinion piece published by CoinDesk, Liu describes this change as a “Token Supercycle,” where money, assets, and ownership are moving onto internet-based systems that operate around the clock. Unlike past economic shifts, this transformation affects issuers, investors, and distributors simultaneously across the globe.

Four forces driving the change

Liu highlights four key developments that are converging to enable this shift:

• Stablecoins: Digital currencies pegged to traditional assets like the U.S. dollar have shown that money can move efficiently on blockchain networks at a global scale.
• Financial institutions: Banks and other institutions are increasingly bringing traditional assets, such as stocks or bonds, onto blockchain systems, a process known as tokenization.
• Blockchain infrastructure: Modern blockchain networks now support the speed and low costs required for real-world economic activity.
• Artificial intelligence: AI systems are creating new types of economic participants that require programmable money to function effectively.

Global access and liquidity

Tokenization removes barriers that previously limited market access. Assets issued in one country can now be distributed globally, instantly, and at any time. This eliminates geographical and size-based restrictions that once fragmented liquidity, or the ease with which assets can be bought and sold.

Liu points to existing mechanisms like American Depositary Receipts (ADRs), which allow foreign companies to list shares in U.S. markets. Tokenization, she argues, scales this concept by making it cheaper and more accessible, enabling any asset from any jurisdiction to reach a broader pool of capital.

Evidence of this shift is already visible, with hundreds of billions of dollars in tokenized real-world assets, including U.S. Treasuries, equities, and private credit, being traded on blockchain networks like Solana over the past year.

Why this matters

According to Liu, the combination of these forces means that capital can now move as freely as information. This could lead to the creation of an “internet capital market,” which she predicts will become the largest capital market in the world.

Sources

• CoinDesk