The post Tokenized treasurys are ‘growing way faster than stablecoins:’ Securitize CEO appeared on BitcoinEthereumNews.com.

Earlier this week, BlackRock’s BUIDL crossed $500 million — a milestone never before reached by a tokenized money market fund. Tokenized funds have really taken off in the last few years, Securitize CEO Carlos Domingo told Blockworks. BlackRock and Securitize launched BUIDL earlier this year.  However, only some investors can access the fund. Qualified investors with more than $5 million in assets can subscribe through Securitize.  So what has led to this growth? The rise of stablecoins is definitely a factor, because it made folks think about what else could be tokenized, Domingo said.  Read more: Circle debuts way to trade BlackRock tokenized fund shares for USDC Right now the total value of the tokenized treasurys market, which includes BUIDL, sits at $1.8 billion. Domingo wouldn’t be surprised to see that market cap top $2 billion soon. While the market is obviously far smaller than the $160 billion stablecoin market, “it’s definitely growing way faster than stablecoins.” “Keep in mind, stablecoins are easier to purchase and use because they’re permissionless, while tokenized treasurys are securities. So they have some restrictions in terms of who can purchase them, how you can transfer them, etc. So they’re never going to be — in my opinion — as big as stablecoins…but I think they can easily become 10% to 20% of the market of stablecoins,” he said. While the rest of the industry was no doubt buoyed by the launch of the bitcoin ETFs earlier this year, Domingo thinks the two have operated in “parallel paths.” “The way I see it is: You’re taking a Web3 asset, which is bitcoin, and you put it on the [traditional finance] world through an ETF. Rather, I think tokenization is the opposite. You’re taking a [traditional finance] asset and you put it on the crypto —…

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Filed under: News - @ July 11, 2024 10:08 pm