Securitize's Tokenized Assets Surge 250% to $3.94 Billion

Real-world asset (RWA) tokenization has seen significant growth, reaching $25 billion last week. Securitize, a prominent player in this sector, has expanded its presence since partnering with BlackRock last year. The company started the year with $1.1 billion in tokenized assets, which has since grown over 250% to $3.94 billion, according to data from rwa.xyz and Securitize.

Tokenized treasuries, a subcategory of the RWA market, have also experienced substantial growth this year. At the beginning of the year, tokenized treasuries were valued at $4 billion, but this figure has since increased by 87% to $7.5 billion. This growth reflects a broader trend in the industry, where asset managers and banks are increasingly exploring the tokenization of various assets.

Carlos Domingo, CEO of Securitize, noted that the initial concerns about the legality and market fit of tokenized assets have largely dissipated. The focus has shifted to determining which assets to tokenize and when to do so. Institutions are now more interested in understanding where the demand lies for tokenized assets. Domingo advised against starting with illiquid assets like real estate and private equity, as tokenization alone does not make these assets liquid. Instead, he sees a growing interest in tokenizing yield-bearing liquid assets.

One of the significant developments in the RWA sector is the integration with decentralized finance (DeFi). This integration not only allows institutions to explore DeFi but also benefits DeFi projects by bringing in high-quality assets for collateral. Domingo highlighted that DeFi companies recognize the need for institutional participation to drive growth in the sector. He anticipates increased activity in lending and automated market making as institutions and DeFi projects collaborate. Additionally, there is a healthy demand for tokenized stocks, which Domingo believes complement DeFi well.

Looking ahead, Domingo initially predicted that the RWA market could reach $50 billion within the next year. However, he has since revised this forecast, estimating that the sector could add another $5 to $10 billion to the current $25 billion by the end of the year. The $50 billion market cap is expected to be achieved when institutions feel secure and ready to enter the market, a process that may take some time. The involvement of major players like BlackRock and Apollo has helped pave the way for this growth.