US President Donald Trump’s re-election victory and Bitcoin ETFs’ success have propelled Bitcoin towards $100,000. A more accommodative approach to banking, self-custody, and digital assets may redefine the US as ‘crypto capital,’ sparking a tokenization race between developed and emerging markets.
El Salvador and other countries like it stand to benefit from this shift. By streamlining capital markets, disintermediating unnecessary roles, and supporting self-custody, these nations can create an alternative to conventional markets that’s cheaper, faster, and more inclusive. The opportunity for small to mid-sized economies to monetize Bitcoin-based capital markets is significant.
However, established financial hubs and major institutions are adopting a tokenization approach that prioritizes institutional investors over decentralized finance. This limits participation, relies on traditional participants, and fails to disintermediate unnecessary roles.
A global tokenization race between developed vs. developing economies, open-source vs. permissioned chains, and Bitcoin vs. CBDCs is likely to emerge in the coming years. As a digital-assets-friendly US administration takes shape, it’s possible that freer, cheaper, lower-friction markets will come out on top.
Source: https://cryptoslate.com/trump-bitcoin-and-the-race-for-tokenized-capital-markets