The world of blockchain and digital assets saw an explosion of transformative narratives in 2024, but few have generated as much momentum as the tokenization of real-world assets (RWAs). While the crypto space often gravitates toward speculative trends, RWA represents a foundational shift — bridging traditional finance with decentralized ecosystems. At the forefront of this movement is Securitize, a leading tokenization platform, and its CEO Carlos Domingo, who believes that integrating RWAs with decentralized finance (DeFi) could unlock a 10x growth in the market.
With current on-chain RWA value (excluding stablecoins) reaching $15.2 billion — and tokenized U.S. Treasuries alone accounting for approximately $4 billion — the infrastructure is already in place. But Domingo argues that much of the existing activity on private blockchains lacks real utility and usage. When filtering out inactive or siloed projects, he estimates the effective RWA market to be closer to $5 billion, presenting both a reality check and a massive growth runway.
The Path to a $50 Billion RWA Market
Despite the conservative recalibration, bullish projections remain strong. Firms like VanEck and Bitwise anticipate the RWA sector could expand to $50 billion within the next 12 to 18 months. Domingo agrees this target is not only realistic but likely achievable, driven by key catalysts:
- Rapid adoption of tokenized Treasury bills
- Expansion of stablecoin ecosystems (now valued at $200 billion)
- New product rollouts from major financial players
- Deepening integration between RWAs and DeFi protocols
“Treasury tokenization alone should grow to several billion dollars next year,” Domingo explained. “Given the size of stablecoins today, we could easily see $10 to $20 billion in tokenized Treasuries.” When layered with upcoming innovations — such as cross-chain liquidity solutions and yield-bearing security tokens — the path to $50 billion becomes clearer.
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Why Tokenization Went Mainstream in 2024
One pivotal moment in 2024 was BlackRock’s high-profile entry into crypto through its tokenized fund initiatives. This wasn’t just symbolic — it signaled institutional confidence in blockchain-based asset management. However, Domingo emphasizes that adoption wasn’t solely driven by brand power.
“What really pushed tokenization into the mainstream was utility,” he said. Early use cases like peer-to-peer transferability made assets more functional on-chain. For instance, users can now transfer tokenized securities instantly across borders without intermediaries — a dramatic improvement over traditional settlement times.
Even more impactful is the ability to use tokenized assets as collateral in DeFi. Platforms are beginning to accept instruments like BlackRock’s BUIDL token for borrowing and lending, creating a feedback loop between traditional yield products and decentralized protocols.
“That’s all predicated on moving securities efficiently on-chain,” Domingo noted, “and enabling liquidity through redemptions in stablecoins or other digital assets.”
This convergence of compliance, liquidity, and programmability has laid the groundwork for broader financial innovation.
The Game-Changer: RWA Meets DeFi
While current progress is promising, Domingo sees the next phase — RWA-DeFi integration — as transformative. By plugging regulated, income-generating assets into DeFi’s open financial stack, both ecosystems stand to benefit.
For DeFi, RWAs offer access to real yield — a critical upgrade from speculative or inflationary tokenomics. For RWA platforms, DeFi provides deep liquidity pools, automated markets, and global reach.
“That’s going to make the industry grow 10x. That’s my personal view,” Domingo stated confidently. “And it’s not just good for us — it’s good for DeFi too. They get high-quality collateral; we get better capital efficiency.”
Imagine a future where mortgage-backed securities, corporate bonds, or even private equity funds are minted as tokens and used across lending protocols, derivatives markets, and automated vaults — all while maintaining regulatory compliance through embedded know-your-customer (KYC) features.
Securitize is actively exploring these integrations, aiming to become a bridge between Wall Street-grade assets and Web3-native applications.
Challenges Ahead: Talent and Scalability
Despite the optimism, scaling this vision won’t be without hurdles. Domingo identified two primary challenges for Securitize in the coming year:
- Leadership bottlenecks
In a semi-humorous tone, Domingo admitted he had become a bottleneck within his own company — a common issue for founders in high-growth startups. To address this, Securitize brought on Michael Sonnenshein, former CEO of Grayscale, to lead strategic initiatives and help scale operations. - Talent acquisition in a competitive market
Hiring top-tier talent during a bull market is notoriously difficult due to heightened competition across crypto firms. Yet Domingo views this as a positive sign — especially as regulatory uncertainty begins to ease under new leadership in Washington.
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FAQ: Understanding RWA and DeFi Convergence
Q: What are real-world assets (RWAs) in crypto?
A: RWAs refer to physical or traditional financial assets — such as bonds, real estate, or commodities — that are represented as digital tokens on a blockchain. This allows them to be traded, fractionalized, and integrated into decentralized applications.
Q: Why is DeFi integration important for RWAs?
A: DeFi offers automated lending, borrowing, and trading markets with global access. By connecting RWAs to DeFi, asset holders gain liquidity and new yield opportunities, while DeFi protocols gain access to stable, real-world returns.
Q: Are tokenized assets regulated?
A: Yes, compliant platforms like Securitize embed regulatory requirements directly into the tokens (e.g., investor accreditation checks), ensuring adherence to securities laws even in decentralized environments.
Q: How do stablecoins relate to RWA growth?
A: Stablecoins provide a seamless on-ramp for fiat capital into blockchain ecosystems. As demand for tokenized Treasuries grows, stablecoin redemptions enable instant liquidity — making yield products more attractive to retail and institutional users alike.
Q: Can anyone invest in tokenized assets?
A: Access depends on jurisdiction and compliance status. Many platforms restrict participation to accredited investors initially but are working toward broader inclusivity as regulations evolve.
The Future Is Tokenized
As Domingo puts it: “Forget the year of the snake — this is the year of tokenization.”
With momentum building around compliant asset issuance, cross-chain interoperability, and DeFi synergy, the RWA ecosystem is poised for exponential growth. The $50 billion milestone may just be the beginning.
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As infrastructure matures and adoption widens, one thing is clear: the line between traditional finance and decentralized innovation is blurring — and the future of value lies on-chain.