Securitize CEO: Tokenized Stocks and ETFs Could Unlock a $5 Trillion Market

kucoin.com2 min read
Securitize CEO: Tokenized Stocks and ETFs Could Unlock a $5 Trillion Market
Image: kucoin.com

RWA Signal Insight

Stocks

Securitize CEO Carlos Domingo projects that tokenizing stocks and ETFs could catalyze the next major expansion phase for the real-world asset market, potentially surpassing the current growth seen in tokenized U.S. Treasuries. During a panel at ETHConf in New York, Domingo highlighted that the global stock and ETF market is valued at approximately $150 trillion. He estimated that migrating just 2% to 3% of this market on-chain could unlock a $5 trillion opportunity, dwarfing the existing $30 billion tokenized asset sector. Domingo emphasized that genuine stock tokenization must provide investors with direct ownership, including voting rights and dividends, rather than merely offering synthetic price exposure. To achieve this, Securitize utilizes smart contracts on public blockchains like Ethereum to maintain regulatory compliance while enabling open network circulation. The firm is actively collaborating with the New York Stock Exchange and Computershare to facilitate on-chain trading and settlement. This shift suggests the emergence of parallel blockchain-based markets that will operate alongside traditional systems to significantly enhance global trading efficiency.

Key points

  • Tokenizing 2-3% of the $150 trillion stock market could create $5 trillion in value.
  • Current tokenized assets market is valued at approximately $30 billion.
  • Securitize partners with NYSE and Computershare to enable on-chain stock trading and settlement.
  • Ethereum remains the primary blockchain choice for institutional tokenization efforts.

Background

Securitize is a prominent digital asset securities firm that provides infrastructure for issuing, managing, and trading tokenized real-world assets. The company utilizes blockchain technology to automate compliance and transfer agency functions, bridging the gap between traditional financial markets and decentralized finance.

Relevance score

8.0/10
Lower relevanceHigher relevance
Source: RWA Signal relevance modelHow we score
Read the full article at kucoin.com
All articles