Tokenization: Capital for Humanity

Transcript

Why are we all here? What was the original dream of crypto? To change money, to change ownership, to change how capital markets are moving. But almost 20 years later, you know, from 2008, most of the real world has not been put on chain. We promised money without permission. We promised ownership without intermediaries. We promised markets without borders.

We promised trust without institutions. But we have not reached billions of people. We have not made finance truly open and global. And we have not removed the middleman. We have not moved ownership of the real world on chain as the original dream. So, the vision is still unfinished. But that's why we are here today. And I want to talk about tokenization capital for humanity. The current cryptocurrency market is at $3 trillion today.

And the growth here won't be coming from the next meme coin or another utility token. It will come from real world assets and tokenization. Currently, 57% of the $3 trillion is driven by Bitcoin. And the rest is all the other utility tokens. So, we have an opportunity to go 10x in the next couple of years and truly have an impact, truly coming making the vision of crypto a reality. And that's why I wrote this book.

Tokenization capital for humanity. And it's coming out next week at tokenizationbook.com and it's a very personal book because I put in stories from my entrepreneurial journey from the last 25 years or more. People I met, mentors, but I also put in a lot of thought about what is tokenization. And to do that, I need to tell you that I have a very special habit. I'd like to draw sketches and ideas on napkins. And some of my most profitable companies built had been started with a sketch and an idea on a napkin.

So, I've been building companies as Victoria said since 1998, internet company, digital companies. And now since more than 10 years, I'm fully doubled down on crypto. I've started LCX as a European leader as a regulated crypto exchange. Now we are building an ecosystem in DeFi. Just launched a new RWA trading interface at our platform. But the next thing I'm believing is what we are building now with total finance. It's my new venture. Stands for total tokenization.

And sometimes one napkin is not enough. And that's why I put several of the napkins in my book over here. And today I also brought the original napkins. And I want to show you the most important ones in my talk First one, what is tokenization? Tokenization is the transformation of ownership into a programmable digital asset that can move as freely as information. Truly coming from the internet of information to the internet of value.

But RWA is not RWA. There are many differences. They're different rights, different risks, different infrastructure. So, real world assets are not one category. Not all RWAs move on chain the same way. That's why you need to differentiate. And in my book I laid out the three waves of tokenization. Money, markets, matter. These are the three waves. And the first two move trillions, but the last one is really the biggest one moving the world.

First, money. These are the stable coins. We're now at $300 market cap, right? Like assets under management and mostly two large stablecoin providers. They moved more than $33 trillion. That's more than Visa and MasterCard combined. But the dollar did not change. It really become the rail that changed. The second wave is what I call markets. So, these are tokenized stocks, bonds, all the financial assets. And this is what we are talking on on these floors right now a lot.

And what we've seen is the tokenized stock had been growing tremendously. Over 400% in market cap in the last 12 months only. And just the New York Stock Exchange, also these incumbents had been coming, embracing these technologies. And that's what I mean with the original vision. We did not really replace all the middle men. I've seen rather middle men jumping into what we are doing. So, we should be careful not giving everything of our vision and ideas away to them. And the third wave, this is matter. Probably the biggest and most exciting wave of them all.

Here we're talking about, like if you look at the current tokenized commodities market, it's mainly gold. We have Tether Gold, Pax Gold on chain with $5 billion. But the overall opportunity is $25 trillion, which which could potentially be tokenized. So, currently we have only a market share of 0.02%. So, the opportunity is truly massive. So, matter is the third and the biggest wave of tokenization. And I need to tell you why this really matters, especially if we're talking about this AI boom and the age of AI we're in.

Because if you build an AI data center for only 1 megawatt of the data center, it you need up to 50 tons of copper. So, for me, copper becomes really the defining metal of our time. So, for 1 mega for 1 gigawatt, you need 50,000 tons of copper. And the reason is over there, these cooling units are built by pure copper. And now the US has started to build Okay, next slide. Um announced thousands of AI data centers.

Um so, especially the Stargate one with 11 terawatts. The AWS and Meta some of the largest one. Meta is 43 terawatts. So, just adding this up, they need 250,000 tons of copper. And there's a gap of at least 2 million tons of copper right now. In the stores, in the warehouses in the US right now, there's only 150,000 tons. So, less than what they require. So, you can imagine there's a big copper crunch happening right now. And in the next 20 years, we need to mine more copper than in the past 10,000 years.

But the way the industry works is outdated and And for all our like things we use from drones, electric cars, wind turbines, we need a variety of different commodities out there. Copper is probably the most interesting right now, but also scandium, radium, these like rare earth are critical minerals and it's for the US a matter of national security to secure that. So, the industry is massive, but they still run on outdated structures. Paper documents, 30 days settlement times.

And literally sending trade documents from A to B, settling these trades and there's a trade financing gap. So, and you all know what blockchain can can do. We can solve this gap. And we cannot solve today's problem, like the copper crunch, with the past solution. We need the blockchain and crypto technology to do that. So, that's why I've been talking about the four freedom of capital, core elements of what blockchain can do. With access, movement, form and gate less gatekeepers. So, anybody can have access, we can move value and the speed of information. And we can pro make a program it to make the form different,

to have programmable assets on chain and we can move it directly. This is the mine to market model. The circle of tokenization, my last napkin of today. But it's a critical one because we can actually not only tokenize the assets which are in physical warehouses, but also the ones which are still in the ground and to be delivered in a short time frame. A mine to market model. And this brings me to the Amazon moment. You know what Jeff Bezos really did? It was not only e-commerce shop. He brought the buyer to the books and the reader to the author. He cut out all these middlemen.

And the same is now true for the commodity market. We're bringing the producers and the global buyers together. We're cutting out the middlemen and we're creating a traceable, verifiable digital asset on a on a digital asset commodity platform like Toda Finance. So, it can settle, it can trade, it can be um loaned, and also financed in a much better way. And there you have to understand why this is so mind-blowing and really revolutionary because I've been presenting this book at the Mining Forum Americas just last week in Colorado Springs. The audience was double your age, 60 years plus. They are operating

with the the thinking and the mindset of the '80s. So, the market is ripe for disruption. And the value we can bring with blockchain is tremendous. We have seen companies like Uber, um Airbnb, and Axe who um not owning the underlying asset, but they've built platforms to build up the relationship with the clients. That's what Toda Finance is building. But, the market ultimately might be even much much bigger.

So, we are building the solution for this, and we are launching with three particular products. One is over here, copper now. So, this is warehouse copper, like stored in warehouses, physical copper. You can imagine like 25-ton slots of grade A LME industrial-used copper in the best quality, what companies like A&D, data centers, defense tech, or electric grid really needs. Then we're building copper in the future. This is in theory the same quality, but not delivered right now, but in the future.

So, this is the mine-to-market model where we take the copper from in the ground with delivery in 6 months, 1 year, 2 years, 3 years. And ultimately creating a new way of financing these mines. And copper yield, so if you have the tokens, there are many opportunities coming up. We have built a whole infrastructure with the digital asset layer, a utility layer to pay the warehouse fees and the blockchain layer underneath with compliance built in. So we are connecting the market participants and the use cases. So the next growth wave of RWA will come or the next growth rate of crypto will come from RWA.

And today's crypto market is large, but with the opportunities we have ahead with tokenized assets is far, far larger. And that's why I wrote this book. It's coming out in the next 10 days. And And it's available at tokenizationbook.com. So with that, I want to leave you with my overall vision. If you want to create the true impact and to make Satoshi's vision of ownership and money and assets bringing them on the chain, we need to go much farther and we need to think much, much bigger than before. To really

go from the 10 to or 3 trillion dollars to the 30 trillion dollars, we can do a 10x from here. So with that, want to leave you and say capital for humanity is here for everybody. Thank you very much.