Armstrong pitches tokenisation as wealth equaliser

Coinbase chief executive Brian Armstrong has argued that the growing divide in global wealth stems from structural barriers in capital formation and ownership, positioning blockchain-based tokenisation as a way to broaden access to assets traditionally controlled by a narrow segment of society.

Tokenised finance framed as a path to wider ownership has become a recurring theme in Armstrong’s public remarks, investor communications and policy-facing discussions, where he has contended that modern financial systems reward proximity to capital rather than productivity or innovation. According to Armstrong, large sections of the global population remain excluded from meaningful wealth creation because they lack access to early-stage investments, efficient savings vehicles, or transparent markets that allow assets to be owned in fractional form.

Tokenisation refers to the process of representing real-world or financial assets—such as equities, bonds, real estate, commodities or intellectual property—on a blockchain. These digital tokens can be divided into smaller units, traded continuously and settled almost instantly. Advocates argue that this lowers entry thresholds and reduces the role of intermediaries, enabling individuals with limited capital to participate in markets that were previously inaccessible.

Armstrong has linked the concentration of wealth in advanced economies to the way capital markets have evolved over decades, favouring institutional investors and high-net-worth individuals. Private equity, venture capital and early-stage technology investing have delivered outsized returns, yet participation has been largely restricted by regulation, minimum investment sizes and geographic barriers. In contrast, wage growth and traditional savings instruments have struggled to keep pace with inflation in many countries, eroding purchasing power for middle- and lower-income households.

The Coinbase chief has suggested that tokenised assets could change this dynamic by allowing ownership to be sliced into smaller, more affordable units and distributed globally. A tokenised building, for example, could be owned by thousands of individuals across borders, each holding a verifiable share recorded on a public ledger. Similarly, tokenised funds or private companies could, in theory, open early access to growth opportunities without the administrative overhead that currently limits participation.

Industry developments indicate that tokenisation is moving beyond theory. Major financial institutions have conducted pilots involving tokenised bonds, funds and collateral management systems. Asset managers have explored issuing tokenised versions of money market funds, while stock exchanges and infrastructure providers have tested blockchain-based settlement to reduce clearing times and counterparty risk. These initiatives suggest growing acceptance of distributed ledger technology within mainstream finance, even as regulatory frameworks remain uneven across jurisdictions.

Critics caution that tokenisation alone cannot resolve deep-rooted inequality. They point out that access to digital infrastructure, financial literacy and regulatory protection varies widely, potentially reproducing existing disparities in a new technological form. Volatility in crypto markets has also raised concerns about whether tokenised assets can provide stable wealth-building opportunities, particularly for households with limited capacity to absorb losses.

Armstrong has acknowledged these risks while arguing that they underscore the need for clear rules rather than outright restrictions. He has repeatedly called for regulatory clarity that distinguishes between speculative crypto-assets and tokenised representations of real-world value. In his view, well-designed regulation could protect consumers, reduce fraud and encourage responsible innovation, allowing tokenisation to integrate with existing financial systems rather than operating at their margins.

Data from global wealth studies underline the scale of the challenge Armstrong is addressing. A small percentage of the world’s population controls a disproportionate share of assets, while billions have little exposure beyond cash savings. Structural factors such as high transaction costs, limited investment choices and currency instability in some regions have compounded this imbalance. Tokenisation, proponents argue, could mitigate some of these constraints by enabling borderless investment and programmable compliance that lowers operational costs.

Coinbase’s own strategy reflects this emphasis. Beyond its consumer trading platform, the company has expanded services for institutions, developers and asset issuers, positioning itself as infrastructure for a tokenised financial ecosystem. Armstrong has framed this evolution as essential for moving the crypto sector away from short-term speculation towards long-term utility tied to real economic activity.