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Key Takeaways
- Securitize’s tokenized assets have grown 250% in 2024, driven by institutional demand.
- Liquid, yield-bearing assets—not illiquid ones—are emerging as the smarter on-ramps.
- Institutional integration with DeFi is reshaping on-chain finance and supporting RWA growth.
Institutional interest in real-world asset (RWA) tokenization has hit a major inflection point, according to Securitize CEO Carlos Domingo, who says the question is no longer if institutions will tokenize assets—but when and how. With RWA tokenization crossing $25 billion in total value last week, market momentum is undeniable.
Since partnering with BlackRock last year, Securitize has seen explosive growth, expanding from $1.1 billion in tokenized assets in January to $3.94 billion—a 250% increase. Meanwhile, tokenized treasuries have nearly doubled, climbing from $4 billion to $7.5 billion year-to-date.
Institutional Appetite for Tokenization Is Clear
“Every single asset manager and bank in the U.S. is now looking at tokenizing something,” Domingo emphasized. Legal uncertainty and questions around product-market fit have largely vanished. Instead, institutions are now asking which assets to tokenize, not whether they should.
However, a key challenge remains: many institutional players still struggle to identify where actual demand lies. According to Domingo, there’s a common misconception that illiquid assets like real estate or private equity are ideal for tokenization. But he warns this is the wrong entry point: “Tokenizing illiquid assets doesn’t magically make them liquid.”
Liquid Yield-Bearing Assets and DeFi Integration Lead the Way
The more promising route, Domingo says, is through liquid, yield-bearing assets, which are gaining traction thanks to their accessibility and clearer use cases. Integration with DeFi platforms has also been a major unlock, enabling institutions to explore decentralized finance while giving DeFi projects access to high-quality collateral.
Also Read: Consensys Founder Predicts Wall Street’s Imminent Move into DeFi and Ethereum
“All the DeFi companies now understand that institutional participation is necessary for DeFi to scale again,” Domingo noted, pointing to renewed growth in on-chain lending and automated market making as a result of these collaborations.
Steady Climb Ahead
While Domingo initially projected that tokenized RWAs could hit $50 billion in 2025, he now offers a more conservative estimate—an increase of $5–10 billion by year-end. The full $50 billion milestone will depend on how quickly institutions feel confident in the infrastructure and regulation surrounding tokenization.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m the cryptocurrency guy who loves breaking down blockchain complexity into bite-sized nuggets anyone can digest. After spending 5+ years analyzing this space, I’ve got a knack for disentangling crypto conundrums and financial markets.
