The tokenization of crypto treasury companies stocks

There will be so many tokenized different assets that not a single adult in the world will exist without an investment portfolio.

This is my prediction after careful thoughts on everything going on with crypto lately.

When you look at it all, it is such an easy guess.

—Blockchain sets the stage for anyone to create valuable assets as tokens.

—Depending on the scale of success of these tokens, a lot of third-party players will build systems atop said tokens.

Think about all the Bitcoin and Ethereum derivatives, wrapped tokens, and ETFs, all either simply trying to bring meaningful economic exposure to the base token on various secondary platforms or leaning on yield strategies, where token holders access yield for investing in the derivatives of the base assets.

This is going to escalate in ways currently unimaginable.

The craziest of things will have tokenized exposures.

Injective tokenizes Sharplink's stock

With a focus on its Ether (ETH) treasury:

Today, Injective is releasing onchain SBET, marking the first onchain digital asset treasury (DAT). This introduces an entirely new asset class that can power programmable finance from day one. SBET transforms a static corporate Ether reserve into a living, yield bearing onchain instrument. This creates a multi‑billion dollar opportunity for Injective as treasuries, equities and balance sheet assets begin migrating to programmable rails. Injective has consistently led categories before others even imagined them, from onchain equities to today’s digital asset treasuries that combine institutional scale with composable DeFi utility.

Why did I have to point out where the focus is?

Well, Sharplink, like most so-called crypto treasury companies have(had?) primary businesses, and cases where they are publicly traded, their stocks, generally represents ownership of a business with a very specific product or service offering prior to the set of crypto treasuries.

So when a blockchain platform launches a tokenized derivative of such stocks but focuses on the company's recent value generation strategy, over everything else, it makes you wonder what sort of crazies awaits us as tokenizations become more widely practiced.

The SBET DAT is built using Injective’s novel iAssets framework, enabling the creation of real world assets with day one utility.

Unlike simple wrappers, iAssets launch with native programmability, governance hooks, integrated liquidity and cross protocol composability. This architecture powered the earlier release of onchain Nvidia stock with 24 hour trading, margin, and derivatives support. With SBET, Injective applies the same capabilities to digital asset treasuries, giving holders access to staking yield, real time trading and use as collateral in DeFi strategies. The result is a corporate reserve that no longer sits idle but actively fuels liquidity and innovation across the Injective ecosystem.

A digital asset treasury token represents ownership in onchain reserves of digital assets such as ETH or BTC held by a corporate or institutional entity. These tokens are typically backed one to one by their underlying assets and preserve full economic exposure while enabling blockchain native benefits. In the case of SBET, it provides transparent exposure to SharpLink Gaming’s growing Ethereum treasury. Over the past month, SharpLink has acquired an additional 176,270 ETH, valued at approximately 463 million dollars, bringing its total holdings to over 1 billion dollars worth of ETH, all of which is staked to generate additional yield. — Injective SBET announcement

Now Irrespective of Injective’s move to market this as an exposure to Sharplink's ETH treasury, SBET is full exposure to everything Sharplink!

It brings Sharplink SBET stock on-chain and enables programmability, interoperability and yield opportunities.

Just as traditional holders of the stock now have indirect exposure to Sharplink's ETH treasury (without owning ETH), It can also be argued that when someone buys the tokenized SBET, they are not simply investing in Ethereum without owning ETH, they are also investing in Sharplink's gaming affiliate network without owning the stock.

Anyone can easily see how stupid in sounds and looks because if the derivative is focused on bringing meaningful economic exposure to Sharplink's ETH treasury, that means it's aims to offer investors exposure to ETH performance, yet it could fail at offering the full performance benefits at all times as SBET is a stock influenced by more than just Sharplink's ETH treasury.

There's effectively an added speculation layer (risk) that can either yield greater benefits or lead to less profits, or worse, negative ROI.

Notwithstanding, this is something that only investors in these assets should care about. What I care about is pointing out that we are going to see tokenization completely change our financial markets, influencing liquidity flow and leading to new layers for speculation.

There are of course, goods and bads to this reality, but in the grand scheme of things, when the risks/costs increase significantly, people will, on their own, make adjustments accordingly, just as projects and companies will.

Posted Using INLEO