Bitcoin evangelist Michael Saylor said the coming tokenization of financial assets could change how credit and yield are priced across the economy and pose a direct challenge to traditional banking and brokerage businesses.

“The real power of tokenization is it creates a free market in credit formation and yield for asset owners,” the Strategy founder and chairman said Thursday on CNBC’s “Squawk Box“. “So if you can tokenize a bunch of securities, then you can shop for the best credit terms and the highest yield.”

By contrast, the banks effectively decide customers’ financing terms in the TradFi, or traditional finance, system, he added.

“In the 20th century TradFi economy your bank decides you just won’t get credit, you just won’t get…