Securitize CEO: Tokenized Assets Cannot Ignore Liquidity

As per 528btc, Securitize co-founder and CEO Carlos Domingo emphasized that tokenization may make it easier for overseas investors to own parts of Manhattan real estate, but the ability to sell such assets is often overlooked. He noted that while digital representation of real-world assets was initially seen as a way to improve liquidity, it has not significantly helped in quickly selling investments with minimal value loss. Domingo stated that liquidity for such assets is as important as accessibility, and illiquid assets remain illiquid regardless of tokenization. He highlighted that tokenized assets, such as shares in apartment buildings or Pokémon cards, inherit the liquidity issues of their physical counterparts. Without immediate sales, investors may face significant losses. Domingo added that while tokenization technology may eventually change this dynamic, current focus is on assets that enhance existing liquidity, such as cash and U.S. Treasuries. He pointed out that stablecoins, backed by cash and government bonds, now represent $300 billion in the crypto market, and tokenized U.S. Treasuries ($9 billion) far exceed tokenized stocks ($681 million). Securitize, one of the firms bringing tokenization to Wall Street, previously helped launch BlackRock’s BUIDL fund, a multi-chain money market fund that has grown to $2 billion since its March 2024 launch. In a recent article in The Economist, BlackRock CEO Larry Fink and COO Rob Goldstein highlighted tokenization’s potential to significantly expand the investable asset universe, particularly in emerging markets.