Tokenised debt helped DeFi survive the 2021 to 2022 bear market, but a pivot to tokenised stocks could boost the $115 billion crypto sector’s next growth phase.
That’s according to a Monday report by Wintermute, a crypto market maker, that said market conditions necessary to incentivise the pivot are already emerging.
The report said central banks are likely to lower interest rates in the next 12 to 18 months, which could dampen bond yields and other debt instruments.
And Robinhood is positioning itself to capitalise on the market shift as the fintech app debuted tokenised stock trading for its users in June.
“Robinhood’s timing is significant,” Wintermute said. “As the yield trade loses momentum, tokenised equities, less dependent on interest rate dynamics, could emerge as the next major driver of onchain adoption.”
Tokenised equities don’t rely on interest rate gymnastics, the way bonds do. Instead, they offer volatility, growth, community, appeal, and retail excitement.
Retail excitement has been noticeably absent from DeFi since the height of its buzz in 2021.