Democratizing access to capital markets will soon become the top priority for most countries. Capital markets are the engine of prosperity in modern capitalism -- and for that engine to keep running, anyone with a mobile phone should be able to participate.
Democratising access means:
1. Reduce barriers for asset issuers. Incentivise more companies go public, help assets trapped in private markets find their way to retail investors etc.
For instance, Newsmax raised $75M via a Reg A+ IPO—selling $10 shares directly to the public, open to all investors. Combined with a $225M private placement, it raised $300M total before listing on NYSE ($NMAX). A model of using Reg A+ to democratize access. The stock surged 2000% because of the community-centric launch fanfare -- a native property of blockchains. Only a matter of time before these are tokenized to allow global investors to participate.
2. Reduce barriers to investors. Make it easy for investors to access assets onchain compared to the laborious process of offchain access.
For instance, you don't need a KYC'ed offshore bank account anymore to access USD -- just buy fiat backed stablecoins.
or -- you can access Hamilton Lane's senior credit fund (SCOPE) on Solana for a minimum of 10k (versus 250k minimums in TradFi alternatives).
Over time, minimums will drop to the floor, KYC/AML will be confined to minting and redemption, and have SSO style authentication where necessary -- instead of today's broken system of KYC-ing every time on every platform.
wild stat:
top 10% of Americans have 88% of equities; the next 40% has 12% of the market
the bottom 50% is in debt
anyway — internet capital markets
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