Securitize CEO Carlos Domingo mentioned 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 stocks and exchange-traded funds onchain could unlock a market far bigger than at the moment’s roughly $30 billion tokenized asset sector.
“The whole equities and ETF market worldwide might be like $150 trillion,” Domingo mentioned. “Provided that a small proportion 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 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 stocks could turn into the trade’s subsequent main development 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 supplied exterior the U.S.
“Lots of people that at the moment say that they tokenize equities, they are not tokenizing fairness,” he mentioned, arguing that many choices depend on derivatives or artificial buildings reasonably than direct possession of the underlying shares.
In accordance with 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, significantly Ethereum, stay the popular infrastructure for institutional tokenization regardless of considerations round transparency and compliance. Securitize makes use of sensible contracts to limit possession to accredited buyers whereas permitting belongings to maneuver on permissionless networks.
Wanting forward, Domingo mentioned he expects blockchain-based markets to develop alongside present monetary infrastructure earlier than steadily absorbing a bigger share of exercise.
“The normal markets are going to remain,” he mentioned. “We’ll see a new market emerge in parallel that may run on blockchain rails and be way more environment friendly.”
Learn extra: BlackRock-backed tokenization firm Securitize clears key hurdle to go public on NYSE
