Coinbase CEO Brian Armstrong posted a message directly pointing out the current structural problems of the capital markets—companies maintaining private status for the long term, profits flowing to a few private investors, poor stock performance after going public, and he predicts that “companies will eventually be able to complete the listing process entirely on-chain.” This statement comes at a time when traditional financial giants like NYSE and NASDAQ are competing to embrace tokenization technology, indicating that “on-chain IPOs” have moved from a distant vision to the countdown to implementation.
(Background: Coinbase boldly claims “Replacing Banks”: Brian Armstrong’s Crypto Super App)
(Additional context: NASDAQ also embraces blockchain, are tokenized securities about to be legally listed?)

Table of Contents

• Traditional IPO Dilemmas: Profits “Hijacked” by Private Investors
• On-Chain IPO: Lower Costs, Reduce Friction, Increase Accessibility
• Wall Street Competing: NYSE and NASDAQ Push Tokenization
• Coinbase’s Ambition for an “All-in-One Exchange”

Recently, Coinbase CEO Brian Armstrong posted a hotly discussed message on the X platform, directly criticizing the severe structural flaws in the current capital markets and boldly predicting that blockchain technology will fundamentally change the game for corporate listings.

Traditional IPO Dilemmas: Profits “Hijacked” by Private Investors

Armstrong pointed out that the current market environment encourages private companies to remain private for extended periods, leading to “companies often stay private for years, with all profits flowing to private/lender investors.” When they finally choose to go public, their stock performance is often disappointing because “in the early stages of a company’s lifecycle, there is a lack of liquid markets to set reasonable valuations.”

This reveals the long-standing dilemma for ordinary investors—by the time high-quality companies go public, the most substantial growth dividends have often been already captured by venture capital firms and private capital.

On-Chain IPO: Lower Costs, Reduce Friction, Increase Accessibility

In response, Armstrong proposed a blockchain solution:

Ultimately, companies will be able to complete the entire listing process on-chain, which will greatly reduce costs, minimize friction, and improve accessibility. I hope this day comes soon.

This is not just speculation. Recently, at the Davos Forum, Armstrong revealed that a senior executive from a top ten global bank told him directly that cryptocurrencies have become the bank’s “number one priority,” even seen as a “threat to survival.” He further pointed out that about 4 billion adults worldwide lack access to high-quality investment channels, and tokenization technology is the key to bridging this gap.

Wall Street Competing: NYSE and NASDAQ Push Tokenization

Notably, traditional financial giants are embracing this technology at an unprecedented speed. NYSE announced this month the launch of a “24/7 tokenized trading platform,” supporting stablecoin trading and real-time settlement; NASDAQ has submitted a proposal to allow tokenized securities to trade on the main board, potentially by Q3 2026.

According to RWA.xyz data, trading volume of tokenized stocks surged 76% in the past month, reaching approximately $2.46 billion. Asset management giants like BlackRock, JPMorgan Chase, and Franklin Templeton are also entering the space. Boston Consulting Group predicts that the global asset tokenization market will reach $16.1 trillion by 2030.

Coinbase’s “All-in-One Exchange” Ambition

Coinbase is actively preparing for this financial revolution. Armstrong has announced plans to build an “all-in-one exchange” by 2026 that integrates cryptocurrencies, stocks, prediction markets, and commodities, aiming to become “a bridge between traditional finance and the crypto world.” Although they started later in the tokenized stock field, Armstrong remains confident: “In the long run, we will win.”

As regulatory frameworks become clearer and technological infrastructure improves, the vision of “completing IPOs entirely on-chain” that Armstrong mentions may arrive faster than most people imagine.