Tokenization is a field primarily beneficial for private markets because of its crucial advantage: the traded shares.
A possibility for the company to trade its stocks is essentially a dogma of economic success. In other words, this is the only condition that makes it profitable and attractive for investors. This is why companies go for the IPO, which, as mentioned above, takes an excessive amount of businesses' resources. The specific instrument tokenization offers, in this case, are DeFi protocols like, for instance, AMM (Automated Market-Making).
In its essence, AMM protocol substitutes a broker-dealer. Brokers act as a mediator between the two parties, purchasing stocks from people who want to sell them with the purpose of selling to those eager to buy. Automated market makers (AMMs) use liquidity pools instead of a conventional market of buyers and sellers to allow digital assets to be exchanged without authorization and automatically. As an example, think of a liquidity pool as a place where your stock and another tradeable currency, such as dollars or euros, coexist. Investors that wish to purchase or sell the issued tokens remove tokens from the pool and exchange them for dollars, or vice versa. At this time, assets in the AMM pool should be deposited by the issuer, but in the future, investors or other parties interested in receiving a part of the pool's commissions may be allowed to fill it. We described the way DeFi protocols work in detail in our article "How does DeFi unleash the potential of tokenized securities?"
The key takeaway is that while remaining private, the tokenized businesses acquire the advantages primarily only available for public companies. As a result, private markets become more liquid and attractive to investors, which is nothing but a benefit for the global economy.