In the midst of the intensification of the global race towards the Tokenize of active active people, the market is still too emerging for institutional adoption, according to Chris Yin, co-founder and CEO of the RWA platform supported by the Galaxy.
Institutional capital has not yet entered the RWA market, and it will take some time to institutions to see its value, Yin said at Cointelegraph on the sidelines of Token2049 in Dubai.
“These things move incredibly slowly, you have to show value, you must first show adoption,” said Yin, comparing Rwa’s development stages with the first days of Bitcoin (BTC) and Stablecoins.
“It is only now 10 years later, they are starting to think of using Stablecoin. The same will happen in tokenized assets or tokenization,” said Yin.
Rwas tokenized are much less than $ 21 billion
Yin has questioned the accuracy of existing market estimates, which suggest that the RWA sector is worth more than $ 21 billion.
“I tend to think that this one, all the data is false, and two, the perspective that most people have is wrong with this, that is to say that I take these $ 21 billion in assets,” said Yin.
According to the executive, the real RWA market capitalization is “more” $ 10 billion, including mainly cash and gold bills, and just a “private credit”.
Rwa.xyz suggests that the total market capitalization of the RWA market amounted to approximately $ 17.4 billion in April 27, the private credit representing almost 60% of all RWAS, while the share of the treasury and basic products was 27% and 8% respectively.
Private credit is not the main Rwas engine
The estimate of the size of the global RWA market is extremely difficult, especially on the private side, where the data is “fragmented and often inaccessible,” said the co-founder of Stobox, Ross Shemeliak, Cointelegraph.
According to stobox estimates, treasury and token bonds must take into account the majority of RWA today, between 60 and 65%.
“Above all, 99.9% of all the companies in the world are deprived, and almost all of them are unusual candidates for tokenization,” said Shemeliak, adding that these companies are generally struggling to access capital and liquidity.
“The tokenization provides an entirely new mechanism for fundraising, the commitment of investors and the transparency of the ceiling table,” he noted.
Institutions are there for money
The CEO of Plume, Yin, underlined the nature of institutional capital, which tends to settle while the markets reach a larger scale in order to earn money.
“I think people tend to forget what is going on with institutions and the real world,” said Yin. “So the reason why tokenized assets are interesting to them is because they are looking for an angle to earn more money, not to save money, not to make efficiency.”
“No one cares about this, in particular Larry Fink, who heads an asset manager of 12 dollars of dollars,” said Yin, adding that the BlackRock Monetary Market Fund has succeeded, but his assets of 2.5 billion dollars are tiny given the net assets of the company.
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With the current modest size of the RWA market, industry should currently count more on the native community, said Yin, adding:
“There is no institutions that put money in onchain. They really try to suck money from the ecosystem. Their products are trying to sell new things in Crypto. Do not put money here. “
“Yes, the Rwa tokenization is small today, just as Bitcoin was in 2013,” admitted Shemeliak from Stobox.
However, tokenized assets are “fundamentally institutional from the first day” because they provide regulated securities, return instruments and financial contracts which require legal compliance and governance.
“Rwas tokenization without institutional involvement, it’s like trying to build a scholarship without regulators, guards or settlements,” he said, adding: adding: adding: adding: adding: adding: adding: adding: adding: adding: adding: adding: adding: adding:
“Innovation can start with startups and web3 protocols, but for a serious volume, you need institutions, fund managers, subscribers, legal advisers and regulated platforms.”
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