This is a segment from the Empire newsletter. To read full editions, subscribe . It’s honestly difficult to recap the biggest narratives of 2024 simply because there were so many, but if I were to engage in that exercise then I’d have to say that tokenization — and BlackRock’s grand entrance into crypto — would high be on the list. Tokenized treasurys currently sit around $4 billion, according to RWA.xyz, making up a small portion of the RWA pie. Currently, total RWA onchain (excluding stablecoins) tops $15.2 billion. However, Carlos Domingo, CEO of Securitize, thinks that you could realistically cut out some of the tokenization efforts that took place on private chains that no one’s using, which might drop the total value to around $5 billion. Both VanEck and Bitwise think that the RWA space could grow to $50 billion — a number Domingo believes is within reach. “If you look at the pace that we’re gonna grow, the Treasury space, that, by itself, should grow to several billion dollars next year, because stablecoins are at $200 billion now. So that should be $10 to $20 billion in treasuries. And then you start adding some of the new products we’re gonna roll out … rolling integrations with DeFi, etc. I think aggregating the industry … should get to $50 billion within the next 12 to 18 months, and hopefully, we will maintain our 20% [to] 25% market share as the leader of the industry,” Domingo said. A look at the biggest tokenized treasur ys As for the success this year, Domingo thinks that tokenization hit the mainstream not only because of bigwigs entering the space, but also because there was “utility of the tokens.” “We started with simple features like peer-to-peer transferability, so faster transferability that makes the asset more useful onchain, like the use cases we’ve been working on — using BUIDL as collateral — et cetera. That is all predicated on being able to move the security onchain efficiently [and] the liquidity through some redemptions with stablecoins, etc,” he explained. Obviously, Domingo doesn’t think that tokenization’s moment in the spotlight is a one-and-done affair. He’s a pretty firm believer that we’ll continue to see the RWA space adapt and evolve throughout the next year. For Domingo, the big catch is the aforementioned integration with DeFi, which is what Securitize is exploring as its next venture. “That’s going to make the industry grow 10x. That’s my personal view,” he told me. But it’ll be good for both RWA and DeFi, which will be able to feed off of each other’s success. When it comes to the challenges of the next year, it’s going to be two-fold for Securitize. First, Domingo semi-jokingly told me he has to stop being a bottleneck (which, he added, was why Securitize was thrilled to bring on Michael Sonnenshein late last year) and then it’s all about talent acquisition. Domingo said that hiring in a bull market is very “challenging” because of the amount of competition in the space but it’s not a bad problem to have, given that the regulatory overhang is no longer a big concern once we transition to this next administration. Forget the year of the snake — this is the year of tokenization. Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter . Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter . Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more. The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.
