Key Takeaways
- Carlos Domingo, CEO of Securitize, predicts the real-world asset market could expand from $30 billion to $5 trillion through stock and ETF tokenization
- Only 2-3% of the global $150 trillion equities market migrating to blockchain would achieve this exponential growth
- Domingo distinguished authentic tokenized equities from synthetic derivative products currently available
- The company maintains strategic alliances with NYSE and Computershare for blockchain-based equity transactions
- Domingo identifies Ethereum as the optimal public blockchain for institutional asset tokenization
The CEO of Securitize, Carlos Domingo, has projected that the real-world asset tokenization sector could experience explosive growth, expanding from its current $30 billion valuation to an enormous $5 trillion market. According to Domingo, this transformation will be driven primarily by tokenized stocks and exchange-traded funds rather than Treasury-based products.
Domingo shared these insights during a panel discussion at ETHConf in New York this Tuesday, where he addressed the evolution of on-chain financial systems.
He referenced the massive global equities and ETF marketplace, estimated at approximately $150 trillion in value. According to his analysis, only a modest fraction of this market transitioning to blockchain infrastructure would be sufficient to achieve the projected $5 trillion milestone.
“Only if a small percentage of that, like 2% or 3%, moves onchain, it gets you very close to that $5 trillion,” Domingo said.
Current State of the RWA Ecosystem
Tokenized United States Treasury securities have dominated the RWA sector throughout the previous two years. However, Domingo contends this growth cycle is reaching maturity, with equities poised to drive the next expansion wave.
According to his assessment, tokenized equities deliver advantages that Treasury-based products cannot match — including enhanced accessibility for diverse investor groups, improved liquidity conditions, and superior compatibility with decentralized finance protocols.
Securitize has already positioned itself strategically in this space. The firm has established partnerships with both the New York Stock Exchange and Computershare, a prominent transfer agent, to facilitate blockchain-based equity trading and settlement processes.
Additionally, the company is advancing toward a public listing and serves major institutional clients including BlackRock.
Defining Authentic Tokenized Equities
Domingo made a firm distinction between legitimate tokenized equities and what he characterizes as synthetic alternatives.
“A lot of people that today say that they tokenize equities, they’re not tokenizing equity,” he said.
He maintained that numerous blockchain-based equity products available internationally depend on derivative instruments or synthetic frameworks. Authentic tokenized stocks, in his view, must provide investors with direct share ownership, complete with voting privileges and dividend distributions.
His blockchain platform of choice for this purpose is Ethereum. Securitize employs smart contract technology to restrict ownership to vetted investors while maintaining assets on permissionless public blockchain networks.
Future Outlook
Domingo doesn’t anticipate blockchain-based markets completely displacing traditional financial systems. Instead, he envisions both operating concurrently for the foreseeable future.
“The traditional markets are going to stay,” he said. “We’re going to see a new market emerge in parallel that will run on blockchain rails and be much more efficient.”
He emphasized that blockchain-based securities would deliver immediate settlement and round-the-clock transferability — capabilities that conventional markets presently cannot provide.
While the RWA sector remains in its nascent stages, Domingo’s perspective aligns with an emerging consensus among industry executives that tokenized equities represent the next critical phase in bridging traditional finance with cryptocurrency infrastructure.
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