Securitize's CEO predicts that tokenized stocks could expand the RWA market from $30 billion to $5 trillion by integrating with blockchain technology.
At the recent ETHConf in New York, Carlos Domingo, the CEO of Securitize, discussed the transformative potential of tokenized stocks and exchange-traded funds (ETFs). He projected that the real-world asset (RWA) market, currently valued at approximately $30 billion, could soar to $5 trillion with the integration of these financial instruments into blockchain technology.
Key Insights:
- Domingo highlighted that tokenized equities and ETFs are likely to be the key drivers behind the RWA market's substantial growth, overshadowing traditional products like private credit.
- He criticized existing tokenized stock offerings for often being synthetic in nature and lacking true ownership, voting rights, and dividends for investors.
Domingo emphasized that even a small fraction of the $150 trillion global equities market moving to blockchain could lead to significant market expansion. He stated, "If just 2% or 3% of that shifts on-chain, we could approach the $5 trillion mark."
As Securitize prepares to go public, the company aims to position itself as a leading tokenization service, targeting institutional clients such as BlackRock. Domingo believes that while tokenized U.S. Treasuries have recently been prominent in the RWA sector, tokenized stocks will become the next major growth area.
To support this vision, Securitize has partnered with the New York Stock Exchange and Computershare to enable on-chain trading and settlement of equities. Domingo drew a distinction between genuine tokenized equities and the growing number of blockchain-based stock products that do not provide actual ownership of shares.
He envisions a future where blockchain-enabled securities will afford investors the same rights as traditional shares while introducing benefits such as instant settlement and round-the-clock transferability. Despite ongoing concerns regarding transparency and compliance, Domingo maintains that public blockchains, especially Ethereum, are optimal for institutional tokenization. Securitize utilizes smart contracts to ensure that ownership is restricted to verified investors, allowing assets to function on open networks.
Looking ahead, Domingo anticipates that blockchain markets will develop alongside existing financial systems, gradually capturing a larger share of market activities. He remarked, "Traditional markets will persist, but we will see the rise of a new market that operates on blockchain technology and is significantly more efficient."
