According to Brian Armstrong, the current financial system systematically favors those who already control capital, while leaving most people locked out of the most profitable markets.
Key takeaways include:
- •Capital income has grown far faster than wages, widening the wealth gap.
- •Access to top-performing financial markets is limited by geography, regulation, and cost.
- •Structural barriers, not individual choices, drive much of the inequality.
- •Tokenization is presented as a way to open global markets to broader participation.
At the core of the issue is a widening gap between labor and capital. Wages have grown slowly over decades, while returns on assets such as equities and private investments have surged. As a result, individuals who rely primarily on income from work struggle to keep pace with those whose wealth compounds through market exposure. Access itself has become a barrier, with many of the highest-performing financial opportunities either restricted, geographically limited, or priced beyond the reach of average participants.
Armstrong argues that this imbalance is not merely economic, but structural. Traditional capital markets are fragmented by borders, regulation, and minimum investment thresholds. For billions of people, participation is either impossible or impractical, meaning global wealth creation increasingly concentrates among a relatively small group with the right access and resources.
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
Tokenization as a Structural Reset
In response, Coinbase has released a detailed research paper outlining how tokenization could change this dynamic. The idea is straightforward but far-reaching: by representing real-world assets as blockchain-based tokens, markets can become more open, divisible, and globally accessible.
Tokenization lowers entry barriers by enabling fractional ownership and continuous access, allowing individuals to gain exposure to assets that were previously reserved for institutions or high-net-worth investors. It also reduces geographic friction, turning fragmented local markets into global ones that operate around the clock.
From Armstrong’s perspective, this shift could fundamentally alter how wealth is created. Instead of capital markets overwhelmingly rewarding those who already have scale, tokenized systems could broaden participation in value creation regardless of location or starting capital. In that sense, tokenization is framed less as a technological upgrade and more as a mechanism for equalizing opportunity.
While regulatory clarity and careful implementation remain necessary, the message is clear: without structural reform, the divide between capital owners and wage earners is likely to keep widening. Tokenization, Armstrong argues, offers a credible path toward markets where access is defined by participation rather than privilege.