Securitize CEO Carlos Domingo stated that tokenized stocks and ETFs, not private credit or Treasury products, will drive the real growth in the market where real-world assets are moved to blockchain. Speaking at the ETHConf event held in New York on Tuesday, Domingo said that moving stocks and exchange-traded funds on-chain could take the tokenized asset market, which is approximately $30 billion today, to a much larger scale.
Target has stocks and ETFs
According to Domingo, the global stock and ETF market reaches a size of approximately 150 trillion dollars. If just 2% to 3% of this total were moved on-chain, the market size could approach well close to $5 trillion. This evaluation stood out as an important sign about which products the area where real-world assets are represented on the blockchain can expand in the coming period.
Domingo said that the global stock and ETF market is around $150 trillion, and even moving just a small portion of it on-chain could bring the market closer to $5 trillion.
Securitize is known as one of the largest companies offering tokenization services to corporate customers. The company continues its preparations for its public offering while working with large institutions such as BlackRock. Domingo’s statements coincided with the company’s aim to further expand its position in this field.
Current leadership is in Treasury products, growth expectation is in stocks
Over the past two years, tokenized U.S. Treasury bonds have become the most dominant category in the real-world asset market. However, Domingo argued that the next big wave of growth could come from tokenized shares. To this end, Securitize has announced partnerships with the New York Stock Exchange and transfer agent Computershare. These collaborations are aimed to enable on-chain buying, selling and clearing of shares.
| Entity type | The current situation | Domingo’s opinion |
|---|---|---|
| Tokenized US Treasury bonds | Dominant category in the last two years | Current market leader |
| Tokenized stocks and ETFs | developing field | Could be the next big growth engine |
Domingo also said that some products offered as tokenized shares in the market do not actually grant direct share ownership. According to him, a significant portion of these products are based on derivative instruments or synthetic structures. Therefore, he emphasized that the basis of a true tokenized share model should be direct ownership of the underlying asset and investor rights similar to traditional shares.
Domingo argued that many structures that claim to do share tokenization today actually offer derivative or synthetic products, not direct shares.
Ethereum stands out on the institutional side
In the long term, blockchain-based securities will offer the same investor rights as traditional shares; In addition, it is expected to provide instant clearing, round-the-clock transfer opportunities and stronger integration with decentralized finance applications. Domingo stated that despite the debates about transparency and compliance, public blockchains, especially Ethereum, continue to be preferred in corporate tokenization.
Mini glossary: Tokenization is the creation of a digital representation of a financial asset on the blockchain. ETF refers to an exchange-traded investment fund that tracks a specific index, basket or group of assets.
The smart contracts Securitize uses allow assets to move across permissionless networks while ensuring ownership is limited to approved investors only. According to Domingo, in the coming period, blockchain-based markets will develop side by side with the existing financial infrastructure and will take a larger share over time.
Domingo stated that traditional markets will not disappear, but a new, more efficient market running on blockchain infrastructure will be formed in parallel.
