> An end goal of crypto is to have all financial and ownership services exist on-chain. To conceptualize the real world as somehow forever separate is going to lead to the correct conclusion that DeFi doesn't seem to affect "the real world".

I get this, and I definitely am not suggesting the real world is forever separate. I am somewhat suggesting it currently is though.

> There are cryptos looking to tokenize and fractionalize public/private equities.

Yes, but the ones I'm aware of are entirely doing it on the backs of traditional finance equities.

> Requires identification.

This is a good point and I almost explicitly called it out myself - traditional finance is valuable much because it acknowledges the existence of the individual in society, not as an abstract entity with cash flows.

Solving the identification problem is a goldmine for society at large, not just DeFi. I just find it hard to imagine a suitable solution that doesn't involve trust in the government and other institutions.

I want to make it clear that I am not anti-crypto/DeFi. I think most payment will one day be distributed/trustless at its lowest layer. But I also think that true value (in the "real world") will come when all of the trust built into the rest of society is layered on top.