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Michael Burry Is Learning About Tokenization and Its Impact on Wall Street

MarketDash Editorial Team
2 hours ago
The investor famous for predicting the 2008 housing crisis is now turning his attention to tokenization, as blockchain technology transforms how Wall Street handles everything from Treasury bonds to stock trading.

Michael Burry, the investor who became famous for betting against the housing market before the 2008 crash (immortalized in "The Big Short"), is now diving into a very different corner of finance. On Tuesday, December 9, Burry shared his interest in tokenization, the process of converting physical assets into digital form on the blockchain.

From Housing Shorts to Digital Assets

Burry shared a story from fintech outlet The Paypapers on X, highlighting how the tokenized asset market is growing and gaining traction on Wall Street. His commentary was characteristically brief but telling: "I am learning. #justkeepswimming," he wrote, signaling his curiosity about this emerging trend.

The timing is interesting. Tokenization isn't some fringe crypto experiment anymore. It's becoming mainstream infrastructure for how financial institutions move money and manage assets.

Wall Street's Blockchain Awakening

Burry's curiosity aligns with a broader shift happening across major financial institutions. JPMorgan Chase & Co. (JPM) CEO Jamie Dimon said earlier this week that the bank is using tokenization to enhance services for clients. The bank rolled out JPM Coin to institutional clients last month, a deposit token representing dollar deposits at the world's largest bank.

Then there's Robinhood Markets Inc. (HOOD), which launched tokenized stocks for European customers in June. These blockchain-backed shares include companies like OpenAI and SpaceX, bringing private market access to retail investors in a new format.

BlackRock, the world's largest asset manager, was an early mover in this space. The firm launched BUIDL last year, a tokenized U.S. Treasury product built on top of Ethereum. As of this writing, the fund holds over $2 billion in assets, according to Rwa.xyz. That's not a pilot program; that's real money flowing through blockchain rails.

Not Everyone Is On Board

Despite the momentum, there's pushback. The Securities Industry and Financial Markets Association, a trade group representing financial institutions, recently urged the SEC to deny digital asset companies the ability to offer tokenized equities through specific exemptive relief. The group called for an "open and transparent" regulatory process instead, suggesting concerns about how quickly this technology is reshaping market structure.

When someone like Burry, who built his reputation on spotting what others missed, starts publicly learning about a trend, it's worth paying attention. Whether tokenization becomes the plumbing of tomorrow's financial system or just another overhyped technology remains to be seen. But with billions already flowing through tokenized products and Wall Street's biggest players committing resources, it's clearly more than a passing fad.

Back to News

Michael Burry Is Learning About Tokenization and Its Impact on Wall Street

MarketDash Editorial Team
2 hours ago
The investor famous for predicting the 2008 housing crisis is now turning his attention to tokenization, as blockchain technology transforms how Wall Street handles everything from Treasury bonds to stock trading.

Michael Burry, the investor who became famous for betting against the housing market before the 2008 crash (immortalized in "The Big Short"), is now diving into a very different corner of finance. On Tuesday, December 9, Burry shared his interest in tokenization, the process of converting physical assets into digital form on the blockchain.

From Housing Shorts to Digital Assets

Burry shared a story from fintech outlet The Paypapers on X, highlighting how the tokenized asset market is growing and gaining traction on Wall Street. His commentary was characteristically brief but telling: "I am learning. #justkeepswimming," he wrote, signaling his curiosity about this emerging trend.

The timing is interesting. Tokenization isn't some fringe crypto experiment anymore. It's becoming mainstream infrastructure for how financial institutions move money and manage assets.

Wall Street's Blockchain Awakening

Burry's curiosity aligns with a broader shift happening across major financial institutions. JPMorgan Chase & Co. (JPM) CEO Jamie Dimon said earlier this week that the bank is using tokenization to enhance services for clients. The bank rolled out JPM Coin to institutional clients last month, a deposit token representing dollar deposits at the world's largest bank.

Then there's Robinhood Markets Inc. (HOOD), which launched tokenized stocks for European customers in June. These blockchain-backed shares include companies like OpenAI and SpaceX, bringing private market access to retail investors in a new format.

BlackRock, the world's largest asset manager, was an early mover in this space. The firm launched BUIDL last year, a tokenized U.S. Treasury product built on top of Ethereum. As of this writing, the fund holds over $2 billion in assets, according to Rwa.xyz. That's not a pilot program; that's real money flowing through blockchain rails.

Not Everyone Is On Board

Despite the momentum, there's pushback. The Securities Industry and Financial Markets Association, a trade group representing financial institutions, recently urged the SEC to deny digital asset companies the ability to offer tokenized equities through specific exemptive relief. The group called for an "open and transparent" regulatory process instead, suggesting concerns about how quickly this technology is reshaping market structure.

When someone like Burry, who built his reputation on spotting what others missed, starts publicly learning about a trend, it's worth paying attention. Whether tokenization becomes the plumbing of tomorrow's financial system or just another overhyped technology remains to be seen. But with billions already flowing through tokenized products and Wall Street's biggest players committing resources, it's clearly more than a passing fad.

    Michael Burry Is Learning About Tokenization and Its Impact on Wall Street - MarketDash News