A new report from the Coinbase Institute argues that the most significant divide in global finance is no longer simply between rich and poor, but between those with direct access to capital markets and those without. The report labels these groups as the "brokered" and the "unbrokered," estimating that traditional, intermediated financial systems exclude roughly four billion people from owning productive assets or raising capital at scale.
The core of the issue is the disparity between capital and labor income. The report highlights that over the last 40 years in the United States, capital income grew by 136%, while labor income increased by only 57%. This has made access to capital markets, not just basic banking, the primary gatekeeper of wealth creation. Ownership of stocks, bonds, and funds remains heavily concentrated among brokered households in advanced economies.
Coinbase contends that permissionless tokenization is essential to bridge this "capital chasm." The report warns that permissioned, closed blockchain models risk replicating existing power dynamics with a few gatekeepers. In contrast, an open, permissionless architecture is likened to foundational internet protocols, allowing anyone to build interoperable financial rails.
Tokenization is already advancing from theory to practice. Examples include Franklin Templeton's tokenized U.S. money market fund shares on public blockchains, JPMorgan's live Tokenized Collateral Network on its Kinaxis platform for moving collateral between institutions, and the New York Stock Exchange's newly announced plan for a 24/7 trading venue for tokenized stocks and ETFs with blockchain-based settlement.
The report's release coincided with the World Economic Forum annual meeting in Davos. Coinbase CEO Brian Armstrong stated on social media platform X that he planned to use the forum to discuss market structure legislation, tokenization, and promoting economic freedom through updated financial systems.
