Highlights

Securitize CEO Carlos Domingo believes tokenized equities and ETFs — not only tokenized Treasuries or private credit — could scale the real‑world asset (RWA) market from about $30 billion today to nearly $5 trillion if a small share of the global $150 trillion equities market moves on‑chain. He favors public blockchains like Ethereum for institutional tokenization and warns many current offerings are synthetic rather than true tokenized shares that grant direct ownership, voting rights and dividends. Domingo emphasizes that authentic tokenized equities must preserve investor rights while delivering instant settlement and 24/7 transferability.

Sentiment Analysis

• The overall tone of the article is cautiously optimistic about the future of tokenized equities. It highlights ambitious growth potential while acknowledging current limitations and industry fragmentation. The sentiment leans positive toward the technology and market opportunity but measured because widespread adoption depends on regulatory, custodial and product‑structure evolution.
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Article Text

Securitize CEO Carlos Domingo argued that tokenized stocks and exchange‑traded funds could become the principal driver that expands the real‑world asset (RWA) market from its present size of roughly $30 billion to levels approaching $5 trillion. Speaking at an ETHConf panel in New York, Domingo pointed to the sheer scale of the global equities market — about $150 trillion — and noted that if just a small fraction, for example 2–3%, transitions on‑chain, the resulting tokenized market would be transformative for the digital‑asset ecosystem.

Domingo suggested that while tokenized U.S. Treasuries have dominated recent RWA growth, equities and ETFs present a larger and perhaps more compelling opportunity because they tap into the vast, liquid markets that institutional investors already trade. He emphasized that achieving meaningful scale will require institutional participation and robust infrastructure, areas where Securitize is positioning itself as a major provider. The company has announced partnerships with traditional market actors such as the New York Stock Exchange and transfer agent Computershare to support on‑chain trading and settlement of securities.

Central to Domingo's argument is a distinction between genuine tokenized equities and a growing set of blockchain‑based products that he describes as synthetic. According to him, many offerings labeled as tokenized stocks do not convey direct ownership of the underlying shares and instead rely on derivatives or wrapped structures. He argued that authentic tokenized securities must maintain the same investor protections and entitlements as conventional shares — including voting rights and dividend access — while also delivering blockchain advantages like near‑instant settlement and continuous transferability.

On the choice of infrastructure, Domingo expressed a clear preference for public blockchains, particularly Ethereum, as the most suitable foundation for institutional tokenization. He acknowledged concerns around transparency and compliance but described technical and governance approaches — for example, smart contracts that enforce ownership restrictions and whitelisting of approved investors — that allow assets to live on permissionless networks while meeting regulatory and custodial requirements.

Domingo also outlined a view of market evolution in which blockchain‑based trading and settlement develop alongside existing financial systems rather than immediately replacing them. Over time, he anticipates a parallel market running on blockchain rails that offers greater efficiency and interoperability with decentralized finance, ultimately capturing an increasing share of activity. He emphasized the need for tokenized instruments to mirror traditional investor rights if they are to earn trust and adoption from institutional participants.

As Securitize prepares to go public, the company is seeking to expand its role in the institutional tokenization space and work with large asset managers. Domingo's remarks reflect a strategic bet that equities and ETFs, more than private credit or Treasuries alone, could be the catalyst that unlocks a multi‑trillion‑dollar tokenized asset market. The realization of that vision will depend on product design, regulatory clarity, custody solutions and the willingness of market incumbents to integrate blockchain‑based infrastructure.

In parallel developments cited in the original reporting, other firms plan substantial deployments of private credit on blockchain rails and are exploring AI for underwriting and risk assessment, underscoring a broader industry push to combine digital asset technology with traditional finance capabilities.

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