Tokenized Stocks and ETFs Could Drive Crypto Market Toward $5 Trillion, Says Securitize CEO

The market for tokenized stocks and exchange-traded funds (ETFs) could become the biggest growth driver for blockchain based finance, according to Securitize CEO Carlos Domingo. Speaking at ETHConf in New York, Domingo said the real-world asset (RWA) sector, currently valued at roughly $30 billion, has the potential to grow into a multi-trillion-dollar market if traditional equities move onchain.

Domingo pointed to the global equities and ETF market, which he estimated at around $150 trillion. He argued that if just 2% to 3% of that market transitions to blockchain infrastructure, the tokenized asset sector could approach $5 trillion in value.

Tokenized Stocks Could Surpass Treasuries and Private Credit

While tokenized U.S. Treasuries have led the RWA market in recent years, Domingo believes tokenized equities will eventually become the industry’s largest segment. He said blockchain-based stocks can offer the same benefits as traditional shares, including ownership rights, voting rights and dividend payments, while also providing faster settlement and around-the-clock transferability.

Domingo also criticized some existing tokenized stock offerings, arguing that many are synthetic products or derivative-based structures rather than true tokenized equities backed by direct ownership of underlying shares.

Ethereum Remains a Preferred Platform for Institutional Tokenization

According to Domingo, public blockchains, particularly Ethereum, remain the strongest option for institutional tokenization. He said blockchain markets are likely to develop alongside traditional financial systems before gradually handling a larger share of global investment activity through more efficient digital infrastructure.