When Capital Aggregation Distorts Markets: The Case For Structural Reform Through Tokenization
The current financial system, characterized by massive capital aggregation in the hands of a few institutional investors like BlackRock and Vanguard, distorts market competition and governance. These firms hold significant stakes across competing companies, and the rise of passive investing means capital flows are dictated by index inclusion rather than fundamental value. The author proposes tokenization as a solution, enabling fractional ownership without pooling and allowing investors to retain direct claims on assets, thereby reforming market structures. AI
