At a discussion panel during ETHConf, Carlos Domingo, the CEO of Securitize, expressed that the introduction of stocks and exchange-traded funds (ETFs) on blockchain technology could potentially reveal a market significantly larger than the current estimated $30 billion tokenized asset sector.
What to know:
— Carlos Domingo highlighted that tokenized equities and ETFs, rather than merely focusing on tokenized Treasuries, could serve as the driving force to expand the real-world asset (RWA) market from around $30 billion today to possibly $5 trillion. He stated that even a small portion of the $150 trillion global equity market transitioning to on-chain could lead to transformative changes.
— Domingo asserted that public blockchains, with a particular emphasis on Ethereum, are ideally suited to facilitate institutional tokenization. He criticized many existing tokenized stock offerings as being synthetic products rather than genuine tokenized equities that provide investors with direct ownership, voting rights, and dividends.
During his remarks at the ETHConf panel in New York on Tuesday, Domingo conveyed his belief that tokenized equities and ETFs, not private credit or Treasury products, will ultimately propel the real-world asset (RWA) market into the trillions.
«The total global equities and ETF market is likely around $150 trillion,» Domingo stated. «If just a minor percentage, say 2% or 3%, transitions on-chain, it could bring us close to that $5 trillion mark.»
These remarks come as Securitize is preparing for its public offering and aims to enhance its position as a leading tokenization provider for institutions, including BlackRock.
While tokenized U.S. Treasuries have dominated the RWA category in recent years, Domingo posited that tokenized stocks could represent the next significant growth driver for the industry. Securitize has formed partnerships with the New York Stock Exchange and transfer agent Computershare to facilitate on-chain trading and settlement of equities.
Domingo made a clear distinction between what he regards as «genuine» tokenized equities and the increasing number of blockchain-based stock products available outside the U.S.
«Many entities claiming to tokenize equities are not actually doing so,» he remarked, suggesting that numerous offerings depend on derivatives or synthetic frameworks rather than direct ownership of the underlying shares.
As per Domingo, the ultimate aim is for blockchain-based securities to provide the same rights to investors as conventional shares while benefiting from instant settlement, 24/7 transferability, and deeper integration with decentralized finance.
Despite concerns regarding transparency and compliance, Domingo maintained that public blockchains, particularly Ethereum, remain the preferred platform for institutional tokenization. Securitize employs smart contracts to limit ownership to approved investors while enabling assets to operate on permissionless networks.
Looking forward, Domingo anticipates that blockchain-based markets will evolve alongside existing financial infrastructure before gradually capturing a larger share of market activity.
«Traditional markets will persist,» he noted. «We are likely to witness the emergence of a new market operating in parallel that utilizes blockchain technology and offers much greater efficiency.»