Tokenization rises as IPOs decline — how blockchain is reshaping capital formation.

A structural shift in capital markets

The traditional initial public offering (IPO) may no longer serve as the hallmark of a company’s entry into public markets. Over the past two decades, the number of listed companies in the United States has declined by nearly half, indicating a more profound structural shift. Factors such as increasing regulatory compliance costs, heightened market volatility, and abundant private capital have made initial public offerings (IPOs) less attractive, particularly for mid-sized and growth-stage firms.

In response to these limitations, blockchain-based tokenization is emerging as a compelling alternative. Tokenization represents more than a technical innovation — it redefines how capital is raised, how ownership is distributed, and how investors engage with assets in a digital economy.

Coinbase and the move toward tokenized equity

Coinbase, a leading cryptocurrency exchange, is among the pioneers exploring tokenized equity. The company is developing a strategy to tokenize its publicly traded shares on Base, its own Ethereum Layer 2 blockchain. This initiative reflects a broader movement among established firms to leverage decentralized infrastructure for capital formation.

Tokenizing equity shares offers distinct advantages: 24/7 global trading access, fractional ownership, real-time settlement, and smart contract-enabled governance. This model enhances transparency, reduces investor barriers, and aligns capital markets with global finance’s dynamic, digital-first nature.

NIMPI and the rise of Revenue-Backed Tokens

In contrast to Coinbase’s approach to tokenized equity, New Internet Media (NIM) provides an alternative use case for tokenization. NIM has introduced NIMPI, an income-generating token backed by royalty revenue from digital content, including music and video. These tokens can be issued by a Decentralized Autonomous Organization (DAO) registered in Wyoming, which has become a hub for blockchain regulatory innovation.

NIMPI token holders will receive regular payouts based on royalties from content managed on NIM’s CopyrightChains platform. Rather than representing ownership in a company, these tokens offer exposure to revenue-producing assets. By converting streaming revenue into tokenized instruments, NIMPI introduces a stable and scalable investment option rooted in the rapidly growing digital media sector.

Wyoming’s legal framework: enabling on-chain innovation

Legislative developments in Wyoming have played a pivotal role in legitimizing and enabling tokenized financial models. Senate File 0038 permits DAOs to register as Limited Liability Companies (LLCs), granting them legal personhood and liability protection. Senate File 0050 extends similar provisions to nonprofit DAOs.

Additionally, Wyoming permits corporations to issue stock certificates on a blockchain, thereby bridging traditional corporate governance with decentralized technologies. These regulatory frameworks reduce legal uncertainty and support the compliant deployment of tokenized structures, such as those pioneered by Coinbase.

Institutional opportunities in tokenized assets

For institutional investors, tokenization introduces new flexibility, transparency, and diversification dimensions. Tokenized equity instruments, such as those proposed by Coinbase, offer familiar exposure to public markets, enhanced by decentralized infrastructure’s continuous liquidity and operational efficiency.

On the other hand, revenue-sharing tokens like NIMPI present an opportunity to access yield-generating assets outside the traditional equity and bond landscape. By tokenizing content royalties, NIMPI delivers predictable income streams with reduced correlation to conventional market cycles, making it an attractive component in diversified portfolios.

Reconfiguring the capital markets landscape

The implications of tokenization extend well beyond individual issuers. As more companies and investors adopt tokenized instruments, the architecture of capital markets may undergo a fundamental shift. Traditional boundaries between public and private offerings, domestic and international investment, and equity and income-based assets are becoming increasingly porous.

Tokenization democratizes access to financial products, enabling participation from a broader spectrum of investors. It also enhances capital mobility, reducing transactional friction and accelerating cross-border investment flows. These capabilities are especially relevant in a globalized and digitally integrated economy.

Modernizing market infrastructure

Blockchain is not replacing traditional markets — it is modernizing them. The core infrastructure of capital formation is being updated to reflect the principles of decentralization, programmability, and inclusivity. Technologies such as smart contracts, DAOs, and tokenized ownership are no longer theoretical; they are used today, backed by forward-thinking regulation and implemented by market leaders.

This evolution is not about abandoning legacy systems but adapting them to meet contemporary demands. By extending traditional financial instruments onto blockchain networks, firms are unlocking efficiencies and empowering investors in ways that were previously not possible.

Building the future of finance on-chain

The decline in IPOs does not reflect a lack of innovation — it marks a redirection. Tokenization is ushering in a new phase of capital markets characterized by flexibility, efficiency, and broader participation. Whether through tokenized equity, such as Coinbase’s initiative, or revenue-backed tokens, like NIMPI, the mechanisms of capital formation are transforming.

The next chapter of market development is not confined to boardrooms or trading floors. It is unfolding on-chain, where the foundational architecture of future finance is being built in real time.

For investors, regulators, and innovators alike, this transformation represents a shift in tools and platforms and a fundamental reimagining of how markets operate in the digital era.