Tokenized equities traded directly on blockchain networks could bypass traditional exchanges like Nasdaq and the New York Stock Exchange within five years, according to Abra CEO Bill Barhydt.
In an interview with Yellow.com on the sidelines of Consensus, Barhydt said the current structure of financial markets, built on delayed settlement and centralized clearinghouses, is increasingly incompatible with the real-time capabilities of crypto infrastructure, setting the stage for a fundamental shift in how assets are issued and traded.
Tokenized Equities Challenge Market Structure
Barhydt outlined a two-stage transition toward tokenized securities, beginning with digital wrappers around existing equities that still rely on legacy settlement systems such as the Depository Trust & Clearing Corporation.
That phase, he said, will offer incremental improvements including 24/7 trading and the ability to use assets within decentralized finance systems, but it will not fully unlock the benefits of blockchain technology.
The more significant change comes with native on-chain equity issuance, where shares are created, traded, and settled entirely on blockchain networks without relying on traditional exchanges or clearing infrastructure.
“So you're no longer settling through DTCC or even having to use NYSE or Nasdaq to trade,” Barhydt said, adding that this model enables real-time settlement and continuous price discovery across global markets.
He pointed to scenarios where major geopolitical or macroeconomic events occur outside market hours, arguing that tokenized systems would allow immediate repricing rather than waiting for exchanges to reopen.
Wall Street Faces Disintermediation Risk
Barhydt said traditional market infrastructure providers are aware of the shift but may not fully control its direction.
“If you think Nasdaq and NYSE don't understand this, you're smoking dope,” he said, adding that major institutions are already investing in tokenization to remain relevant.
At the same time, he suggested there is a credible risk that parts of the system could be bypassed altogether if companies choose to issue equity directly on-chain rather than through traditional listings.
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“The parade is going to march on without them,” he said, referring to exchanges and clearinghouses that fail to adapt to blockchain-based models.
The potential disruption extends beyond exchanges to include clearing systems and custodians, which currently play a central role in settlement and asset ownership verification.
AI Banking And Tokenization Converge
Barhydt framed tokenized equities as part of a broader shift toward a crypto-native financial system built on stablecoins, decentralized finance, and artificial intelligence.
He said Abra is working toward a model where portfolios are constructed in real time using AI, with users able to hold tokenized assets, earn yield, and borrow against their holdings without relying on traditional banking infrastructure.
“All dollars will be stablecoins. All stocks will be tokens,” Barhydt said, describing a future in which financial assets become fully fungible and globally accessible.
In that system, credit would be based on the value of tokenized portfolios, enabling users to spend or borrow against their assets through integrated financial services.
Barhydt compared the shift to the early days of the internet, arguing that skepticism around tokenization mirrors past doubts about technologies such as voice over IP.
The transition, he said, will not happen overnight but is already underway as regulatory clarity improves and institutional interest grows.
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