At the Plan ₿ Forum in Lugano, Jesse Knutson explains how tokenization could make global capital markets more open, efficient, and inclusive. | Credit: CCN.com
At the Plan ₿ Forum in Lugano, CCN’s Dr. Lorena Nessi sat down with Jesse Knutson, Head of Operations at Bitfinex Securities, to discuss how blockchain is transforming access to capital and reshaping global markets.
From his vantage point overseeing operations at one of the first regulated platforms for tokenized securities, Knutson outlined how digital assets can make capital markets more efficient, transparent, and inclusive, particularly in emerging economies where access to investment remains limited.
Tokenization in Capital Markets: Solving Access and Liquidity Challenges
For Knutson, tokenization addresses two long-standing barriers in finance: access and efficiency.
While investors in advanced economies have no shortage of opportunities, he notes that in many parts of the world, both individuals and companies face structural exclusion from global capital.
People in regions like El Salvador or Southeast Asia often struggle to access stable currencies and quality investments, he explained. “Banks aren’t lending or when they do, it’s at very high rates. It’s difficult for companies to borrow, grow, and contribute to their local economies outside the G7.”
He argues that tokenization allows companies to raise funds more easily while giving investors direct control over their assets. Settlements can occur in seconds, not days, eliminating the inefficiencies that plague traditional trading systems.
“If you sell your stock in Taiwan on Friday, you don’t get your cash until the following week. On a blockchain, that happens instantly,” Knutson said.
Real-World Assets: From Tokenized Bitcoin Mining to Digital Bonds
Bitfinex Securities has already tested how real-world assets (RWAs) can be brought on-chain through multiple issuances.
One of the most notable examples is the Blockstream Mining Note , a tokenized contract representing Bitcoin mining power that raised around $50 million and ultimately distributed 1,200 Bitcoin to investors, one of the largest RWA payouts to date.
The platform has since launched BMN2, as well as tokenized U.S. Treasury bills and bonds for micro-financing firms that lend in USDT and pay annual coupons between 9 and 12%.
Bitfinex is also preparing its first tokenized public equity offering, alongside experiments with litigation finance and other alternative assets.
Why Asia Leads in Tokenized Finance Adoption
Knutson believes Asia’s investor culture makes the region uniquely suited for tokenized markets. Unlike in Europe or the United States, where funds and institutional managers dominate, much of Asia’s capital is self-managed by retail investors.
“In markets like Taiwan, South Korea, and India, retail traders make up between 50% and 80% of equity trading volume,” he said. “They’re comfortable managing their own money and analyzing risk. That’s why Asia was such a big part of early Bitcoin trading, it’s a culture that naturally aligns with tokenized assets.”
Regulation and Licensing: Building Trust Through Oversight
While decentralization is often celebrated in crypto, Knutson stresses that regulation and investor protection are critical for scaling tokenized markets.
Bitfinex Securities operates under two key jurisdictions: the AIFC financial center in Kazakhstan, where it was the first licensed digital-asset exchange and clearinghouse in 2021, and El Salvador, where it received the country’s very first license under the new Digital Assets Law.
“These frameworks give us the ability to operate globally while ensuring transparency and accountability,” he explained. “After the 2016-17 ICO boom, it became clear that markets need rules of the road — clear rights, obligations, and disclosures. We finally have that structure now.”
Security, Whitelisting and Preventing Misuse
Despite operating in crypto, Bitfinex Securities takes a centralized, compliance-first approach. Every participant must undergo KYC and AML checks before joining its whitelisted ecosystem on the Liquid Network, a Bitcoin sidechain.
“It’s a rigorous process, but necessary,” Knutson said. “Because all users and issuers are verified, the risk of hacks or illicit activity is very low. And if something ever goes wrong, tokens can be reassigned to the rightful holders.”
By expanding investor participation globally, rather than concentrating capital in a few regions, Knutson believes tokenization can gradually reduce borrowing costs and improve funding for small and mid-sized enterprises worldwide.
Education and the Road to Mainstream Tokenized Markets
Mainstream adoption, Knutson emphasized, depends on education and demographic change.
“When we started in 2021, few agreed with our view that this was the direction markets were heading,” he said. “Now, firms like BlackRock and BNY Mellon call tokenization a megatrend.”
He expects the next phase of growth to come from equity products that attract higher liquidity than fixed-income tokens.
And as younger generations, millennials and Gen X, inherit wealth and move into policymaking roles, their comfort with blockchain technology will make tokenized finance a natural part of the global market infrastructure.
From Sandbox to Scale: Bitfinex Securities’ Next Chapter
Bitfinex Securities currently operates within the FinTech Lab framework in Kazakhstan but plans to apply for a full market license within the year. The platform already manages more than $250 million in assets across several listings.
“We think we’re ready for prime time,” Knutson said. “It’s still early, but this transition will play out over the next decade and it’s going to be a very big trend.”
Navigating Global Uncertainty Through Technology
Knutson is realistic about the broader geopolitical and economic backdrop. He describes the present as a “fourth turning,” a cyclical period of upheaval that historically has led to major global resets.
“Hopefully, this time, technology will guide us through peacefully,” he said. “Bitcoin, Tether, and what we’re building can be part of that solution. I’m optimistic, though living in Taiwan, I kind of have to be.”
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