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Chainlink co-founder Sergey Nazarov predicts that tokenized real-world assets (RWAs) will soon be more valuable than cryptocurrencies. He points to the increasing involvement of traditional finance in decentralized finance, driven by a growing interest in tokenization. Nazarov also noted that Chainlink is ready to take advantage of this shift in the blockchain space. TradFi Interest in Tokenized RWAs To Alter Blockchain Nazarov anticipates an interconnected world where decentralized finance (DeFi) and TradFi actively transact with each other. Acknowledging the growing interest in tokenized RWAs, he says TradFi would be DeFi’s largest customer. Speaking at Token2049 in Singapore, Nazarov highlighted DeFi’s ability to generate yield and create reliable markets for RWAs. He urged the industry to prepare for this shift, noting that it’s already happening, driven by asset tokenization. According to Nazarov, blockchain technology is giving TradFi exactly what it needs. Chainlink co-founder also highlighted how decentralized infrastructures like Chainlink and smart contracts are transforming the digital space by removing the need for traditional counterparty relationships. Instead of relying on human decision-making, automated code ensures outcomes, improving efficiency and reducing risks that traditional finance models often face. Read more:  Real World Asset (RWA) Backed Tokens Explained Chainlink co-founder on TradFi, DeFi, and tokenized RWA during Token2049 in Singapore Nazarov emphasized that this represents a major shift from the current TradFi model, where delays and risks stem from human intervention. His remarks align with his statements from late August, when he predicted that tokenized real-world assets (RWAs) would surpass crypto in value by 2027, driven by institutional interest and TradFi integration. Currently, the RWA market is growing, with RWA.xyz data showing it is already a $2.22 billion industry. Tokenized Securities Industry Valuation. Source: RWA.xyz This development comes as blockchain technology continues to tackle the infrastructure challenges faced by traditional finance, while also…

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Filed under: News - @ September 19, 2024 6:24 pm