Key Points
- Securitize’s CEO believes that tokenized real-world assets (RWA) could gain momentum if they reach the $1 trillion milestone.
- The RWA segment could hit this milestone in the next 2-5 years, particularly with the involvement of BlackRock’s Ethereum-based BUIDL Fund.
Carlos Domingo, the founder and CEO of Securitize, has expressed his belief that tokenized real-world assets (RWA) could gain significant momentum if they reach the $1 trillion mark.
Domingo’s firm, Securitize, manages the tokenized BUIDL Fund tokens redemptions and placement for BlackRock. He stated that the tokenized real-world assets market is still in its infancy, similar to the early stages of cryptocurrency.
Tokenized Assets and the $1 Trillion Milestone
Domingo suggested that once the tokenized real-world assets market hits the $1 trillion mark, it will become a significant part of capital markets and financial services. He predicts that this milestone could be reached within the next 2-5 years.
This prediction comes as BlackRock ventures into the RWA segment with its Ethereum-based BUIDL Fund. This move has increased interest in tokenized US treasuries, with the overall market reaching the $1 billion mark shortly after the introduction of BUIDL, according to data from Dune Analytics.
Despite the growth, Domingo pointed out that with stablecoins’ total market cap at around $152 billion, even with the addition of $1 billion in tokenized US treasuries, the RWA market is still less attractive to some players.
The Future of Tokenization
Domingo also highlighted that the next target for tokenization could be credit, following US treasuries and securities. He stated that tokenized cash is currently the primary focus, followed by tokenized treasuries and money market funds. However, credit offers less liquidity but a higher yield.
Ondo Finance shared a similar perspective, suggesting that tokenizing a fraction of the US money market fund could push the RWA sector to surpass even the Bitcoin market cap.
If BlackRock’s move into RWA through the BUIDL Fund attracts more participants, the $1 trillion mark could be reached sooner than expected.
