Carlos Domingo, CEO of Real World Asset (RWA) tokenization company Securitize, predicted that tokenization of stocks and exchange-traded funds (ETFs) will be the main catalyst for expanding the RWA market to the multi-trillion dollar level. Speaking on a panel at ETHConf in New York, Domingo pointed to the global stock and ETF market, worth around $150 trillion, as the foundation for this growth.
From $30 billion to $5 trillion
If just 2% to 3% of that $150 trillion market migrates to blockchain-based platforms, the total market size of tokenized real-world assets could approach $5 trillion, Domingo said. The RWA tokenization sector is currently estimated at approximately $30 billion, and has grown primarily through tokenized US Treasury products over the past two years. Domingo noted that while US Treasuries are leading the way, the next phase of expansion will be driven by equities and ETF tokens, which provide access to a wider range of investors and greater liquidity.
Why stock tokens are important
Tokenized stocks and ETFs represent a transition from traditional financial infrastructure to a decentralized, programmable ledger. By issuing shares and fund units on-chain, issuers can speed up settlement times, reduce administrative costs, and enable fractional ownership. This means that retail and institutional investors alike can trade traditional securities on global exchanges 24/7, without traditional trading hours or relying on intermediaries.
Impact on the broader cryptocurrency market
Domingo’s prediction is in line with a growing consensus among industry leaders that the tokenization of mainstream financial assets will become an important bridge between traditional finance and the cryptocurrency ecosystem. If realized, the $5 trillion RWA market would represent a significant portion of global capital markets, potentially attracting regulatory attention and requiring new infrastructure for custody, compliance, and cross-chain interoperability. For now, the sector is still in its infancy, but a trajectory that indicates adoption will accelerate as more issuers consider on-chain services.
conclusion
While tokenized U.S. Treasuries have dominated the RWA narrative in recent years, Domingo’s comments highlight a strategic pivot to stocks and ETFs as the next growth engine. Given the size of global stock markets, even a small shift to on-chain could create a market worth trillions of dollars. For investors and industry observers, this development signals the maturation of the tokenization space, moving beyond niche products and toward mainstream financial integration.
FAQ
Q1: What is real world asset (RWA) tokenization?
RWA tokenization is the process of representing ownership of traditional assets such as stocks, bonds, real estate, and commodities as digital tokens on a blockchain. This allows for fractional ownership, fast settlement, and global trading.
Q2: Why does Carlos Domingo believe that equity tokens will drive growth?
Domingo argues that the global stock and ETF market is worth $150 trillion, so moving just a small portion on-chain could create a $5 trillion market. He sees equity tokens as the next logical step after tokenized U.S. Treasuries, offering broader appeal and liquidity.
Q3: What is the current size of the RWA tokenization market?
Domingo said the market is currently worth about $30 billion, with tokenized U.S. Treasuries accounting for a significant portion of that.
