1 00:00:14,230 --> 00:00:18,349 [HOST] This is X1 Report. On June twelfth, SpaceX went public on Nasdaq at one hundred thirty- 2 00:00:18,349 --> 00:00:22,420 five dollars a share. It raised about eighty-six billion dollars and was valued at one 3 00:00:22,420 --> 00:00:26,586 point seven seven trillion dollars, the largest initial public offering ever. SpaceX was 4 00:00:26,586 --> 00:00:30,752 founded in two thousand two. For most people, that morning was the first time in twenty- 5 00:00:30,752 --> 00:00:32,598 four years they were allowed to buy it. 6 00:00:32,848 --> 00:00:37,835 [ANALYST] Compare that with Amazon. It listed in nineteen ninety-seven, less than three years old, 7 00:00:37,835 --> 00:00:42,936 worth about four hundred thirty-eight million dollars. Almost everything Amazon became was 8 00:00:42,936 --> 00:00:47,810 built in public, where anyone could own it. SpaceX did its growing behind a rope. That 9 00:00:47,810 --> 00:00:52,684 rope has a name: private markets. Today we explain the tokenization supercycle through 10 00:00:52,684 --> 00:00:55,291 them, for people who have never owned a token. 11 00:00:55,541 --> 00:00:59,903 [HOST] Start with the words. A token is a record of ownership on a blockchain, a shared ledger 12 00:00:59,903 --> 00:01:04,216 that anyone can read and nobody can quietly edit. Solana Foundation president Lily Liu 13 00:01:04,216 --> 00:01:08,528 defines the token supercycle as the long-term migration of money, assets and ownership 14 00:01:08,528 --> 00:01:12,941 onto always-on internet infrastructure. Money moved first. Listed stocks are moving now. 15 00:01:12,941 --> 00:01:14,997 Private markets are the last locked room. 16 00:01:15,247 --> 00:01:19,852 [ANALYST] And it is a big room. Private markets hold about twenty trillion dollars: shares in 17 00:01:19,852 --> 00:01:24,735 companies that have not listed, loans made by funds instead of banks, and funds that own 18 00:01:24,735 --> 00:01:29,563 property and power lines. Meanwhile the public market has shrunk. The United States had 19 00:01:29,563 --> 00:01:34,279 roughly eight thousand listed companies in nineteen ninety-six and three thousand six 20 00:01:34,279 --> 00:01:37,220 hundred fifty-seven at the end of twenty twenty-five. 21 00:01:37,470 --> 00:01:41,307 [HOST] There are three locks on the door. The first is who gets in. Most private deals in the 22 00:01:41,307 --> 00:01:45,279 United States can only be sold to an accredited investor: two hundred thousand dollars of 23 00:01:45,279 --> 00:01:48,893 income, or one million dollars of net worth, not counting your home. Staff at the 24 00:01:48,893 --> 00:01:52,909 regulator estimate that eighteen point five percent of households qualify. It is a test of 25 00:01:52,909 --> 00:01:54,025 wealth, not of knowledge. 26 00:01:54,275 --> 00:01:59,257 [ANALYST] The second lock is that you cannot leave. To sell a private share you find a buyer, 27 00:01:59,257 --> 00:02:04,420 negotiate, and then ask the company, which can match the offer or block the sale. That 28 00:02:04,420 --> 00:02:09,643 wait alone commonly runs thirty to sixty days. The third lock is price. A private share 29 00:02:09,643 --> 00:02:12,344 only gets a price when somebody raises money. 30 00:02:12,594 --> 00:02:16,526 [HOST] So what does a token change? The minimum shrinks to a few dollars. The share and the cash 31 00:02:16,526 --> 00:02:20,503 settle in one transaction. The ledger itself becomes the share register. A locked-up asset 32 00:02:20,503 --> 00:02:24,479 can be used as collateral for a loan. And most important, the rules ride inside the asset. 33 00:02:24,479 --> 00:02:28,456 On Solana, a token can check every transfer: is this wallet approved, is the lock-up over. 34 00:02:28,456 --> 00:02:31,858 The company's right to approve a buyer becomes code that answers in a second. 35 00:02:32,108 --> 00:02:37,398 [ANALYST] This is already live on Solana. Hamilton Lane and Apollo have put private credit funds 36 00:02:37,398 --> 00:02:42,873 there. A venue called PreStocks saw one point three six billion dollars of trading in two 37 00:02:42,873 --> 00:02:48,286 hundred sixty-seven days, in tokens tied to companies like SpaceX and OpenAI. And on the 38 00:02:48,286 --> 00:02:53,699 day SpaceX listed, real SpaceX shares were issued on Solana, redeemable into an ordinary 39 00:02:53,699 --> 00:02:54,807 brokerage account. 40 00:02:55,057 --> 00:02:59,376 [HOST] Now the sober number. There are two point three six billion dollars of tokenized private 41 00:02:59,376 --> 00:03:03,645 equity and seven point nine seven billion dollars of tokenized credit. Together that is 42 00:03:03,645 --> 00:03:07,866 about ten billion dollars, against twenty trillion. Zero point zero five percent. Five 43 00:03:07,866 --> 00:03:12,283 cents in every hundred dollars. Solana holds thirty-six percent of the equity side, second 44 00:03:12,283 --> 00:03:13,019 of any network. 45 00:03:13,269 --> 00:03:18,711 [ANALYST] And here is the lesson most explainers skip. A token with a famous company's name can be 46 00:03:18,711 --> 00:03:24,276 four different things: a claim on a shell company that holds shares, a debt note, a broker 47 00:03:24,276 --> 00:03:29,717 contract, or a share the company issued itself. In May, Anthropic and OpenAI warned that 48 00:03:29,717 --> 00:03:35,220 unauthorized share transfers were not valid, and one token fell twenty-seven percent in a 49 00:03:35,220 --> 00:03:40,537 day. Solana worked perfectly. The contract behind the token did not. A token cannot go 50 00:03:40,537 --> 00:03:43,258 around the company. It has to go through it. 51 00:03:43,508 --> 00:03:47,689 [HOST] So a real supercycle needs seven things. Issuers that issue their own tokens. Rules that 52 00:03:47,689 --> 00:03:51,822 fit private assets. Identity inside the token. Independent proof of what backs it. Real 53 00:03:51,822 --> 00:03:56,098 depth. Dollars on the same ledger. And a path to the public listing. Two of those are live 54 00:03:56,098 --> 00:03:58,996 on Solana today, two are partly there, and three are not yet. 55 00:03:59,246 --> 00:04:04,833 [ANALYST] Here is the idea to take away. An initial public offering becomes a dial, not a door. A 56 00:04:04,833 --> 00:04:10,099 company that controls its token's rules could open ownership to employees, then to 57 00:04:10,099 --> 00:04:15,429 customers, then to everyone, one step at a time. X1 Labs, the company behind the X1 58 00:04:15,429 --> 00:04:20,823 blockchain, showed the appetite at small scale: it opened its round to the public on 59 00:04:20,823 --> 00:04:26,089 Wefunder and one hundred six investors joined. The full explainer, with charts and 60 00:04:26,089 --> 00:04:29,107 sources, is on X1 Report. Thanks for listening.