- RWA continues to be within the early phases, however the BlackRock transfer may enhance momentum.
- Securitize founder believes that mainstream adoption is possible if RWA hit $1 trillion mark.
Carlos Domingo, Securitize’s founder and CEO, has reiterated that tokenized real-world belongings (RWA) will acquire momentum in the event that they attain the $1 trillion milestone.
Domingo, whose agency handles BlackRock’s tokenized BUIDL Fund tokens redemptions and placement, emphasized that;
“For tokenized real-world belongings, I believe we’re within the early phases—like what crypto was earlier than. Even when you add stablecoins, we’re nonetheless not on the $200B/$300B mark.”
He added,
“As an trade, I believe as soon as we hit the $1 trillion mark of real-world belongings on-chain, that’s when this turns into an vital a part of capital markets and monetary providers.”
Nonetheless, the RWA section may hit the $1 trillion milestone within the subsequent 2-5 years. Particularly as momentum picks up after BlackRock’s foray with its Ethereum [ETH]-based BUIDL Fund.
Past BUIDL Fund and tokenized US treasuries
After its influence on spot Bitcoin [BTC] ETFs, market watchers have keenly tracked BlackRock’s digital asset technique.
The transfer into tokenized real-world belongings (RWA) by way of its Ethereum-based BUIDL (BlackRock USD Institutional Digital Liquidity) Fund has heated up tokenized US treasuries.
The general tokenized US treasuries hit the $1 billion mark shortly after BUIDL’s debut, per Dune Analytics data.
Based on Domingo, with stablecoins’ complete market cap of round $152 billion, including $1 billion of tokenized US treasuries nonetheless makes the RWA much less engaging to some gamers.
Nonetheless, Domingo highlighted that credit score would be the subsequent goal within the tokenization pipeline after US treasuries and securities.
“Tokenized money is primary. Then, tokenized treasuries and cash market funds. However, then credit score is the subsequent one with much less liquidity however larger yield.”
Ondo Finance echoed the same sentiment, noting that tokenizing a fraction of the US cash market fund can tip the RWA sector to surpass even the BTC market cap.
Citing a latest Cumberland report, Ondo highlighted,
“Cash market fund AUM in the beginning of 2023 was round $8.4T” and if 1.5% of that issuance had been to maneuver on-chain, it could be bigger than the present market cap of stablecoins. If 7.5% of it moved on-chain, it could be bigger than Bitcoin.”
To place it in a different way, tokenizing about 10% of cash market fund AUM (belongings beneath administration) is sufficient to rival BTC.
If BlackRock’s RWA transfer by way of BUIDL Fund attracts extra gamers, the $1 trillion mark may very well be fast-tracked.
