BlackRock CEO Larry Fink recently stated:
"The next generation for markets, the next generation for securities, will be the tokenization of securities."
This article explores how tokenizing shares empowers SMEs and startups with entreprenepreneurial freedom, streamlined accounting, and a competitive edge against larger corporations.
The Challenge: Market Inefficiencies in Private Equity
In Switzerland, 99% of companies are SMEs or startups with fewer than 250 employees. Their shares face critical barriers:
- Prohibitively high IPO costs (up to CHF 56 million).
- Lengthy listing processes (4–6 months).
- Illiquidity discounts (up to 80% devaluation) due to lack of secondary markets.
Meanwhile, retail investors—despite strong demand—are locked out of private equity. The Gamestop saga demonstrated their market influence, yet structural inefficiencies persist.
👉 Why tokenization bridges this gap
What Is Tokenization?
Nicola Plain, CEO of Aktionariat AG, defines it as:
"Creating a digital representation of a company share on the blockchain—where the token is the share itself."
Key Advantages:
- Tamper-proof transaction tracking via blockchain.
- Eliminates paperwork (e.g., declarations of assignment).
- Interoperability with blockchain-based markets for frictionless trading.
The Solution: Automated Market Makers (AMMs)
Traditional markets rely on third-party market makers, which avoid illiquid small-cap stocks. Tokenization paired with AMMs solves this by:
- Enabling decentralized, liquid trading without intermediaries.
- Transparent pricing via public blockchains.
- Retail investor access, democratizing private equity.
Aktionariat’s Brokerbot: An AMM on Ethereum that lets companies:
- Launch share markets in <1 month.
- Design custom employee participation or fundraising programs.
- Bypass costly listings and market-maker fees.
FAQs
1. How does tokenization reduce costs?
By removing IPO fees and automating compliance/accounting via smart contracts.
2. Are tokenized shares legally binding?
Yes—they represent full ownership rights under compliant frameworks (e.g., Swiss law).
3. Can SMEs really compete with large firms post-tokenization?
Absolutely. Tokenization unlocks liquidity and visibility traditionally reserved for public companies.
4. What’s the role of blockchain if not strictly "necessary"?
Blockchain ensures trustless execution, transparency, and global accessibility without centralized control.
Conclusion
Tokenization isn’t just a tech trend—it’s a paradigm shift for private equity. SMEs and startups now wield tools once exclusive to giants, while investors gain unprecedented access.
The future? As Fink predicts: tokenized, democratized, and boundless.
🚀 Ready to transform your equity strategy?
👉 Start with tokenization today