Securitize CEO: Tokenized Stocks and ETFs, Not Private Credit, Are the Trillion-Dollar Engine for RWA

While private credit and tokenized U.S. Treasuries currently dominate the conversation around Real-World Asset (RWA) tokenization, Securitize CEO Carlos Domingo asserts that the true catalyst for a multi-trillion-dollar market lies elsewhere: in tokenized stocks and Exchange-Traded Funds (ETFs).

Speaking at the ETHConf in New York on Tuesday, Domingo articulated a vision where the on-chain potential of traditional equities and ETFs dwarfs the existing $30 billion tokenized asset market. He emphasized:

“Globally, the total market value of stocks and ETFs stands at approximately $150 trillion. If even a modest fraction, say just 2% to 3% of these assets, were to migrate onto the blockchain, it would effortlessly give rise to a market nearing $5 trillion.”

Domingo’s remarks come as Securitize actively prepares for its Initial Public Offering (IPO). As a premier tokenization service provider for Wall Street behemoths, including the world’s largest asset manager, BlackRock, Securitize is strategically expanding its footprint within the institutional digital asset landscape.

While tokenized U.S. Treasuries have been the RWA sector’s most significant draw over the past two years, Domingo firmly believes that tokenized stocks represent the next-generation growth engine poised to propel the industry to unprecedented heights.

To facilitate this monumental shift, Securitize has forged strategic alliances with the New York Stock Exchange (NYSE) and leading stock transfer agent Computershare. This collaboration aims to create seamless pathways for the trading and settlement of traditional stocks on blockchain networks.

Debunking Misconceptions: The Distinction Between Derivatives and True Tokenized Stocks

Addressing the proliferation of “blockchain stock products” in international markets, Carlos Domingo cautioned: “Many entities currently claim to be offering stock tokenization, but what they are presenting is fundamentally not genuine stock tokenization.”

He elaborated that numerous offerings are merely blockchain-wrapped derivatives or synthetic assets, which fail to confer actual underlying stock ownership to investors.

Domingo underscored that the long-term objective for developing blockchain securities is to guarantee investors the identical shareholder rights associated with traditional stock ownership. Simultaneously, these digital assets must harness the inherent advantages of blockchain technology: instantaneous trade settlement, continuous 24/7 liquidity, and deep integration with the decentralized finance (DeFi) ecosystem.

Public Chains Reign Supreme, Paving the Way for Parallel Financial Markets

Regarding institutional concerns about regulatory compliance and transparency, Carlos Domingo reiterated that public blockchains, particularly Ethereum, remain the optimal infrastructure for institutions seeking to issue tokenized assets.

He explained that Securitize’s methodology involves implementing smart contract-based firewalls. These mechanisms ensure that only authenticated and qualified investors can hold the assets, while simultaneously allowing these assets to circulate freely on permissionless, open networks.

Looking ahead, Domingo envisions a future where the nascent blockchain-based market initially develops in “parallel” with existing traditional financial infrastructures. Over time, this new paradigm will progressively absorb an increasing volume of mainstream market transactions. He concluded:

“The traditional market will not vanish, but we are on the cusp of witnessing a powerful new parallel market emerge, one that will accelerate on the blockchain track and operate with unimaginable efficiency.”