Ex-Grayscale CEO Michael Sonnenshein Joins Securitize as COO
Grayscale has been prominent in the news this year, with significant developments including GBTC’s conversion to an ETF, outflows, a spin-off, and multiple filings and trust launches.
A related update is that Michael Sonnenshein, former CEO of Grayscale, has joined Securitize as chief operating officer. His new focus is on integrating real-world assets (RWA) onto blockchain platforms, which he identifies as a key frontier in digital assets.
During his tenure at Grayscale, Sonnenshein aimed to integrate digital assets into traditional financial frameworks. At Securitize, the strategy will reverse, emphasizing the tokenization of traditional assets.
The market for tokenized RWAs has considerable growth potential, especially as projections suggest significant expansion by 2034. Insights from Brooklyn’s RWA Summit highlight that the utility and economic benefits of tokenization will drive its adoption.
Tokenized fiat currencies, or stablecoins, represent a well-established market valued at approximately $200 billion. Notably, Securitize assisted BlackRock in tokenizing its USD Institutional Digital Liquidity Fund (BUIDL) in March, showcasing another practical application of tokenization.
Sonnenshein noted that US Treasurys back BUIDL, serving as foundational collateral for many capital markets transactions. He emphasized the importance of developing products that address inefficiencies and expand offerings beyond just dollar-backed assets to include yield-bearing investments, presenting an attractive value proposition.