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- RWA continues to be within the early levels, however the BlackRock transfer might improve 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 property (RWA) will achieve 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 property, I believe we’re within the early levels—like what crypto was earlier than. Even for those who add stablecoins, we’re nonetheless not on the $200B/$300B mark.”
He added,
“As an business, I believe as soon as we hit the $1 trillion mark of real-world property on-chain, that’s when this turns into an necessary a part of capital markets and monetary providers.”
Nevertheless, the RWA section might 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 impression on spot Bitcoin [BTC] ETFs, market watchers have keenly tracked BlackRock’s digital asset technique.
The transfer into tokenized real-world property (RWA) via 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.
In keeping with Domingo, with stablecoins’ complete market cap of round $152 billion, including $1 billion of tokenized US treasuries nonetheless makes the RWA much less enticing to some gamers.
Nevertheless, 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 greater yield.”
Ondo Finance echoed an identical 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 at the start 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 otherwise, tokenizing about 10% of cash market fund AUM (property beneath administration) is sufficient to rival BTC.
If BlackRock’s RWA transfer via BUIDL Fund attracts extra gamers, the $1 trillion mark may very well be fast-tracked.
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