Why tokenization is a revolution in ETF-style market structure
2026-06-04 22:47:18
According to CoinDesk, tokenization is seen as a revolutionary market structure reminiscent of ETFs. ETFs, initially perceived as a repackaging of traditional assets in the 1990s, actually revolutionized market structure. Tokenization shares several key similarities with ETFs: tokenized assets are not merely one-time "issues," but can be minted or burned on demand based on a pool of underlying assets or rights. The trading mechanism is the same as for ETFs, with arbitrage mechanisms maintaining price fairness. A crucial feature of the tokenized market is its ability to continue trading even when the underlying market is closed, providing investors with the ability to adjust risk across different timeframes. With increased participation and improved risk management tools, this 24/7 market will become increasingly natural.
Source:CoinDesk
This content is for market information only and does not constitute investment advice.
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