Fairmint CEO Thierry Schellenbach has declared that tokenization is the long-awaited fix for inefficiencies in private equity, calling it the “structural overhaul” needed to modernize how ownership and liquidity work in the $13 trillion asset class.
Speaking at the Global Digital Assets Summit, Schellenbach argued that blockchain-based tokenization can “turn private equity from an illiquid, opaque system into a transparent and tradable market,” allowing investors and founders to access real-time liquidity and governance tools through programmable tokens.
Tokenization: The Liquidity Engine for Private Markets
Fairmint, a San Francisco–based firm specializing in on-chain equity and fundraising platforms, has been at the forefront of transforming startup and private equity investment models. Schellenbach highlighted that private markets hold more capital than public ones, yet remain constrained by outdated structures that limit access and liquidity.
“Tokenization breaks the traditional bottleneck of private markets,” Schellenbach stated. “It introduces programmable ownership, automated compliance, and real-time value discovery — all without intermediaries.”
Institutional and Regulatory Shifts Underway
The comments come as major institutions, including BlackRock, KKR, and Hamilton Lane, accelerate their tokenization pilots for private funds. Global regulators are also warming to on-chain private equity, with jurisdictions like Singapore, the EU, and the UK establishing frameworks for digital securities and fund tokenization under existing financial laws.
Fairmint’s model enables companies to tokenize cap tables and provide instant secondary liquidity to shareholders, an innovation that could redefine venture capital exits and employee stock options.
Market Context
The World Economic Forum projects that 10% of global GDP will be tokenized by 2030, a forecast that underscores growing confidence in digital ownership models. The private equity sector, long criticized for its lack of transparency, is seen as one of the most immediate beneficiaries.
FAQs
1. What does tokenization mean in private equity?
Tokenization converts traditional equity ownership into digital tokens recorded on a blockchain, making them easier to trade, track, and manage.
2. How does Fairmint’s platform work?
Fairmint allows private companies to issue and manage equity on-chain, enabling instant secondary markets for employees and investors.
3. Why is tokenization important for private markets?
It offers liquidity, transparency, and efficiency, solving long-standing problems in traditional venture and private equity ecosystems.
4. Are regulators supportive of tokenized securities?
Yes, jurisdictions like Singapore, Switzerland, and the EU have started formalizing frameworks that permit tokenized fund structures under regulated conditions.
5. Which institutions are already experimenting with tokenization?
Major firms like BlackRock, KKR, JPMorgan, and Hamilton Lane have active tokenization initiatives for private funds and credit markets.
