Bitcoin may challenge the global status of the US dollar, and tokenization will become the infrastructure of the financial future.

The CEO of a globally renowned asset management company recently released a 27-page annual letter to investors, which contains some thought-provoking viewpoints. He warned that if the United States cannot control its expanding debt and fiscal deficit, the dollar's status as the global reserve currency may be replaced by emerging digital assets such as Bitcoin.

The CEO pointed out that the United States has long benefited from the global reserve currency status of the dollar, but this advantage is not permanent. Since 1989, the growth rate of U.S. national debt has been three times that of GDP. This year, interest payments alone will exceed $952 billion, surpassing defense spending. By 2030, mandatory government spending and debt service will consume all federal revenue, resulting in a long-term deficit.

However, this executive does not oppose the development of digital assets. He believes that decentralized finance is an extraordinary innovation that can make markets faster, cheaper, and more transparent. However, at the same time, if investors begin to think that Bitcoin is safer than the US dollar, this innovation could also undermine the economic advantage of the United States.

In the performance review, he mentioned that the Bitcoin ETF launched by the company in the United States has become the largest exchange-traded product debut in history, with assets under management surpassing $50 billion in less than a year. This product ranks third in asset attractiveness within the entire ETF industry, second only to the S&P 500 index fund. It is noteworthy that more than half of the demand comes from retail investors, with three-quarters coming from investors who have never held the company's products before.

The CEO also emphasized the important role of ETFs in promoting the development of investment culture in Europe. Currently, only one-third of individual investors in Europe participate in capital market investments, which is significantly lower than the over 60% ratio in the United States. To increase this ratio, the company is collaborating with several European financial institutions to jointly lower investment barriers and improve local financial literacy.

When talking about tokenization, the executive stated that it is becoming a key force in reshaping financial infrastructure. He compared the current global flow of funds system to an inefficient relay race, while tokenization is like email, enabling direct, real-time circulation of assets, bypassing all intermediaries.

Tokenization will profoundly change the financial ecosystem, transforming real-world assets (such as stocks, bonds, and real estate) into digital tokens that can be traded online. This not only enables transactions to be instantaneous but also achieves the "democratization" of investment, lowering participation thresholds, simplifying shareholder voting processes, and providing more people with opportunities to enter high-yield sectors.

However, the widespread adoption of tokenization still faces key technological and regulatory challenges related to identity verification. In the future, tokenized funds may become a regular allocation for investors, similar to ETFs, but this issue must be resolved first. India has made progress in this area, with over 90% of Indians now able to securely complete transaction verification through smartphones.

Despite the current economic anxieties, the CEO still tries to reassure investors, stating that the economy will eventually stabilize. His annual letter not only warned of the risks to the dollar's global reserve status but also outlined a blueprint for the future of finance, including how tokenization will reshape capital markets and breakthroughs in digital identity systems.