RWA Market Could Reach $50 Billion with DeFi Integration, Securitize CEO Claims
Tokenization and BlackRock's entry into crypto are among the key narratives of 2024. Tokenized treasuries currently total approximately $4 billion, as reported by RWA.xyz, within a broader on-chain real-world asset (RWA) market exceeding $15.2 billion.
Carlos Domingo, CEO of Securitize, suggests that tokenization efforts on underused private chains may reduce this value to around $5 billion. Both VanEck and Bitwise project the RWA market could expand to $50 billion, a target Domingo believes is achievable.
Domingo states that the Treasury segment alone could grow significantly, identifying stablecoins at $200 billion as a catalyst for $10 to $20 billion in treasuries next year. He anticipates new product integrations with DeFi will further bolster growth, maintaining a 20% to 25% market share as an industry leader.
The mainstream acceptance of tokenization is attributed to both major entrants and the utility of tokens. Domingo emphasizes features like peer-to-peer transferability, which enhance on-chain usability, including using BUIDL as collateral.
Domingo believes tokenization will continue evolving, particularly through integration with DeFi, which he sees as crucial for growth. He predicts this collaboration could increase industry size tenfold.
Challenges for Securitize include addressing internal bottlenecks and talent acquisition amidst competitive hiring conditions. Domingo notes that regulatory concerns are less prominent as the administration changes.
This marks a significant moment for tokenization in the financial landscape.