In the midst of the intense global career to Tokenize the assets of the real world, the market is still too nascent for institutional adoption, Chris Yin, co -founder and CEO of the RWA platform pen backed by Galaxy.
The institutional capital has not yet entered the RWA market, and the institutions will take some time to see their value, Yin told Cointelegraph to the margin of Token2049 in Dubai.
“These things move incredibly slowly, you have to show value, you first have to show adoption,” Yin said, comparing Rwa’s stages in the first days of Bitcoin (BTC) and Stablecoins.
“Only now, 10 years later, are you starting to think about using the stablcoin? The same will happen in tokenized assets or tokenization,” said Yin.
The Tokenized RWA are much narrower than the $ 21 billion
Yin questioned the precision of existing market estimates, which suggest that the RWA sector is worth more than $ 21 billion.
“I tend to think that one, all the data are wrong, and two, the perspective that most people have is wrong with this, which is that I take these $ 21 billion in assets,” said Yin.
According to the Executive, the real figure of market capitalization RWA is “more like” $ 10 billion, which mainly includes treasure and gold invoices, and only a “private credit.”
RWA.XYZ suggests that the total market capitalization of the RWA market amounted to approximately $ 17.4 billion of the axis or April 27, with a private loan that represents almost 60% of all RWA, while the participation of the Treasury and the basic products was respective.
Private credit is not Rwas’s main driver
Estimation of RWA’s global market size is extremely difficult, especially on the private side, where the data is “often inaccessible,” said Stobox co -founder Ross Shemeliak, Cointelegraph.
According to Stobox estimates, tokenized treasure and bonds must represent most RWA today, or between 60 and 65%.
“Crucially, 99.9% of all companies in the world are private, and almost all of them are unplugged candidates for token,” Shemeliak said, adding that such colleagues generally fight with access to capital and liquidity.
“Tokenization provides a completely new mechanism for fundraising, investor participation and transparency of the CAP table,” he said.
Institutions are here for money
The CEO of Penacho, Yin, highlighted the nature of institutional capital, which tends to move while the markets reach a larger scale to earn some money.
“I think people tend to forget what is happening with institutions and the real world,” said Yin. “Then, the reason why tokenized assets are interesting for them is because they are looking for an angle to earn more, money, not saving money, not making efficiency.”
“No one is concerned about that, especially Larry Fink, who runs an asset manager of $ 12 billion,” said Yin, adding that the Blackrock money fund has been successful, but its $ 2.5 billion assets are Tiny’s net assets.
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With the current modest size of the RWA market, the industry should depend more on the native community, said Yin, added:
“There are zero institutions that put money in the chain. They are trying to suck real money from the ecosystem. Their products try to sell new things to cryptography. Do not put money here.”
“Yes, RWA’s token is small today, just like Bitcoin was in 2013,” Shemeliak admitted from Stobox.
However, tokenized assets are “fundamentally institutional from first day”, since they provide regulated values, performance instruments and financial contracts that require legal compliance and governance.
“Tokenizar RWA without institutional participation is like trying to build a bag of values without regulators, custodians or layers of liquidation,” he said, added:
“Innovation can begin with new companies and web protocols, but for a serious volume, it needs institutions, fund managers, subscribers, legal advisors and regulated platforms.”
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