Securitize CEO Carlos Domingo stated he believes tokenized equities and ETFs, not personal credit score or Treasury merchandise, would be the asset class that finally drives the real-world asset (RWA) market into the trillions.
Talking at a ETHConf panel in New York on Tuesday, Domingo argued that bringing shares and exchange-traded funds onchain might unlock a market far bigger than at this time’s roughly $30 billion tokenized asset sector.
“The entire equities and ETF market worldwide is probably like $150 trillion,” Domingo stated. “Only if a small percentage of that, like 2% or 3%, moves onchain, it gets you very close to that $5 trillion.”
The feedback come as Securitize prepares to go public and seeks to increase its position as one of many largest tokenization suppliers for establishments, together with BlackRock.
Whereas tokenized U.S. Treasuries have emerged because the dominant RWA class over the previous two years, Domingo argued that tokenized shares might change into the trade’s subsequent main progress engine. Securitize has introduced partnerships with the New York Inventory Trade and switch agent Computershare aimed toward enabling on-chain buying and selling and settlement of equities.
Domingo additionally drew a distinction between what he considers “real” tokenized equities and the rising variety of blockchain-based inventory merchandise provided exterior the U.S.
“A lot of people that today say that they tokenize equities, they’re not tokenizing equity,” he stated, arguing that many choices depend on derivatives or artificial constructions quite than direct possession of the underlying shares.
In line with Domingo, the long-term objective is for blockchain-based securities to supply the identical investor rights as conventional shares whereas benefiting from instantaneous settlement, 24/7 transferability and deeper integration with decentralized finance.
Domingo maintained that public blockchains, notably Ethereum, stay the popular infrastructure for institutional tokenization regardless of considerations round transparency and compliance. Securitize makes use of good contracts to limit possession to accredited buyers whereas permitting belongings to maneuver on permissionless networks.
Trying forward, Domingo stated he expects blockchain-based markets to develop alongside current monetary infrastructure earlier than regularly absorbing a bigger share of exercise.
“The traditional markets are going to stay,” he stated. “We’re going to see a new market emerge in parallel that will run on blockchain rails and be much more efficient.”
Learn extra: BlackRock-backed tokenization agency Securitize clears key hurdle to go public on NYSE
