Securitize CEO Carlos Domingo stated he believes tokenized equities and ETFs, not non-public 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 as we speak’s roughly $30 billion tokenized asset sector.
“Your entire equities and ETF market worldwide might be like $150 trillion,” Domingo stated. “Provided that a small share of that, like 2% or 3%, strikes onchain, it will get you very near that $5 trillion.”
The feedback come as Securitize prepares to go public and seeks to broaden its function 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 turn 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 “actual” tokenized equities and the rising variety of blockchain-based inventory merchandise provided exterior the U.S.
“Lots of people that as we speak say that they tokenize equities, they don’t seem to be tokenizing fairness,” he stated, arguing that many choices depend on derivatives or artificial constructions somewhat than direct possession of the underlying shares.
Based on Domingo, the long-term aim is for blockchain-based securities to supply the identical investor rights as conventional shares whereas benefiting from immediate 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 issues round transparency and compliance. Securitize makes use of sensible contracts to limit possession to accepted buyers whereas permitting property to maneuver on permissionless networks.
Trying forward, Domingo stated he expects blockchain-based markets to develop alongside current monetary infrastructure earlier than progressively absorbing a bigger share of exercise.
“The standard markets are going to remain,” he stated. “We will see a brand new market emerge in parallel that may run on blockchain rails and be way more environment friendly.”
Learn extra: BlackRock-backed tokenization agency Securitize clears key hurdle to go public on NYSE
