The Widening Wealth Divide
On January 20, Coinbase co-founder and CEO Brian Armstrong asserted that tokenization possesses the potential to level the financial playing field, granting access to the world's most lucrative markets for all individuals, irrespective of their geographical location or income level. He articulated this argument on X, formerly Twitter, positing that global wealth creation could finally become more equitable through the conversion of assets into digital tokens.
Armstrong's commentary was prompted by a blog post released on Monday, which highlighted the escalating gap between labor and capital income in the United States. The blog post revealed that real capital income per capita has seen a substantial increase of 136% since the 1990s. In contrast, labor income has grown by 57%, underscoring that returns on investment significantly outpace profits derived from employment.
The data presented further indicated that economic growth is largely driven by wealth creation through capital, stocks, real estate, and other assets, leaving wage earners at a disadvantage.
Tokenization as the Key to Wealth Access
There’s a fundamental problem with global wealth creation:
– Capital markets overwhelming benefit the rich
– Working income growth is massively outpaced by capital income
– Most people are unable to or priced out from participating in the best financial marketsEveryone should… pic.twitter.com/AjP2wOVztb
— Brian Armstrong (@brian_armstrong) January 20, 2026
According to Coinbase, the disparity in wealth is primarily attributed to access to financial markets rather than income disparities themselves. The cryptocurrency exchange revealed that approximately 4 billion adults globally lack access to bonds or stocks. In the U.S., only 17% of the lowest-earning households own equities, a stark contrast to the 96% of the highest-earning families.
Coinbase's report indicated that stock ownership is often below 10% in many emerging economies, demonstrating that being excluded from capital markets presents a more significant obstacle to wealth accumulation than low income alone. This lack of access is further exacerbated by other barriers, such as high minimum investment requirements or complex onboarding processes, which prevent numerous individuals from capitalizing on wealth-building opportunities.
The digital asset platform contended that, in addition to receiving a salary, individuals must possess the ability to save, invest, and grow their assets in line with economic expansion to achieve true economic freedom. These limitations on access hinder general prosperity and deepen social divisions, thereby creating a structural chasm between those who possess capital and those who do not.
To address this divide, Coinbase proposed tokenization as a means to attain economic freedom by connecting payments to international capital markets, thereby offering all individuals enhanced access to opportunities for wealth accumulation. The digital asset platform emphasized that this approach aims to extend the benefits of technological advancements to everyone, not exclusively to financial innovators.
The cryptocurrency exchange further elaborated that the transformative potential lies in applying the technological framework to traditional assets themselves, such as tokenizing stocks, bonds, and other assets on permissionless blockchains.
Coinbase also noted that tokenized equity markets could potentially reduce investor transaction costs by over 30% in the near future, with even greater long-term advantages. However, the most significant outcomes are expected to be increased participation and a broader distribution of wealth, rather than merely cheaper markets.
Coinbase asserted that tokenization can facilitate the seamless movement and global accessibility of assets.
Within the report, Coinbase highlighted stablecoins as another avenue for expanding capital access. Notably, stablecoins have already proven their utility as an inexpensive, 24/7 payment rail. Nevertheless, Coinbase views stablecoins as merely the foundational layer.
Coinbase also drew attention to business-to-business (B2B) payments, which surged from under $100 million per month in early 2023 to over $6.4 billion by August of the previous year, signaling a transition from experimental usage to integration into core financial operations.
Technology and Policy as Pillars of Financial Inclusion
Coinbase identified technology as a critical element in addressing the financial gap. They also emphasized the necessity of intervention from policymakers to foster economic freedom and empower more individuals to build wealth.
The cryptocurrency exchange stated that the combined efforts of technology and policymaker intervention should encompass a supportive regulatory framework that encourages innovation while simultaneously ensuring consumer protection.
To combat the financial divide, Coinbase proposed that regulators permit banks to engage with tokenization technology, establish clear and transparent pathways for tokenizing traditional assets, and uphold the neutrality of public blockchains.
The cryptocurrency exchange also pointed out that the development of an inclusive financial ecosystem will necessitate the enhancement of market protections and the recognition of the right to self-custody.