Crypto Assets market new narrative: previously stocks on-chain, now equity on-chain

Author: Yue Xiaoyu

1. Everyone knows that the earlier you buy a quality asset, the greater the profit potential.

While US stock assets are already of high quality, the profit potential for listed companies is very limited. For example, how many times can star stocks like Apple and Nvidia still rise?

There are still many high-quality companies that have not yet gone public, such as the commercial space rocket company SpaceX, the artificial intelligence leader xAI, the humanoid robot company Apptronik, the parent company of Claude, Anthropic, the crypto community platform Discord, the U.S. compliant exchange Kraken, and so on.

However, do we ordinary retail investors have the opportunity to buy equity in these high-quality unlisted companies?

In the traditional private equity market, it is actually very difficult for ordinary retail investors to purchase these high-quality assets, which can be said to be exclusive to institutions and high-net-worth circles.

For example, in the United States, the investment threshold for private equity is very high, requiring high net worth (annual income > $200,000 or net assets > $1,000,000), with a minimum investment starting at $250,000.

The key issue is that the liquidity of these private equity investments is also very poor, with a lock-in period of 5 to 10 years, and exit depends on IPOs or mergers and acquisitions, resulting in a long trading cycle.

It is important to know that it is very difficult for a company to go public, even if it is a high-quality company. It must go through numerous challenges and gather the right timing, geographical advantages, and human factors to be listed.

At the same time, the company has gone through multiple rounds of financing ABCD before going public, with its valuation continuously increasing, ultimately issuing stocks publicly and obtaining market pricing.

Once listed, the company's room for growth will be very limited, and therefore the profits that public investors can obtain will also be very limited.

The traditional private equity market faces a dilemma where liquidity is poor, and the threshold is high, leading to limited profit margins after going public.

2. Previously, stocks were on the blockchain, and now we take a further step by directly putting equity on the blockchain!

The main value of tokenizing private equity lies in breaking down the barriers of the traditional private placement market, including high entry thresholds, low liquidity, and information opacity.

By tokenizing private equity, it can achieve global liquidity, be traded at any time, and the minimum investment threshold will also be much lower.

Retail investors can participate at low cost while having high return opportunities.

In fact, it can be better understood in the context of the cryptocurrency sector:

A publicly listed company is a project that has been listed on a top exchange, such as mature projects like Solana and Cosmos, which have limited growth potential.

The leading companies in the market are BTC and ETH, which can be considered large-cap stocks with more limited volatility.

And unlisted companies are like various golden dogs; once you catch one, the returns can be dozens or even hundreds of times.

3. Currently, a highly popular equity tokenization trading platform has been seen, called Jarsy.

Jarsy is a very innovative trading platform that tokenizes real equity at a 1:1 ratio, bringing shares of top private companies like SpaceX and Anthropic onto the blockchain.

This allows ordinary investors to share in the growth dividends that were once monopolized by Wall Street with just $10.

The question arises, is this platform reliable? Is there really underlying asset support?

First, Jarsy is registered in the United States and strictly complies with the regulations of Regulation D and Regulation S, under the supervision of the SEC.

Therefore, there are no issues with compliance.

Secondly, Jarsy was founded in 2024 by key members from Facebook, Uber, and Afterpay (which was later acquired by Square), bringing with them extensive experience in financial technology.

At the same time, Jarsy has recently completed a $5 million seed round of funding, led by the renowned venture capital firm Breyer Capital, which has previously invested in Facebook and Circle.

4. Let's take a closer look at the operational logic of Jarsy

The investment targets supported on the Jarsy platform are very diverse, including SpaceX, xAI, Databricks, Apptronik (the manufacturer of the humanoid robot Apollo), Anthropic (the parent company of Claude), Discord, Kraken, Perplexity, Ripple, Stripe, and more.

It can be seen that the variety is very rich, covering star unicorn companies in industries such as AI, robotics, aerospace, and fintech, giving retail investors the opportunity to take the lead in laying out in cutting-edge industries.

From a deeper perspective, each token on the Jarsy platform is backed 1:1 by shares held by a specially established SPV company for custody.

The equity of the target company is entirely held by Jarsy's SPV, separated from Jarsy's operating entity, ensuring the security of the assets.

So in terms of security, this platform currently seems to have no issues.

5. Be sure to seize the major trend of the integration of coins and stocks, find early high-quality assets, and reap the industry dividends!

Don't reject new things; everyone can try experiencing equity tokenization trading platforms.

I have been paying attention to the major trend of the integration of stocks and cryptocurrencies, but I have struggled to find suitable opportunities, mainly because stock assets are too mature. What we can do is to engage in arbitrage between the stock market and the crypto market.

Now that equity has been put on the blockchain, it gives us more opportunities to mine quality assets, which is the chance for us ordinary retail investors!