Chainlink Co-Founder Predicts Tokenized Assets Will Soon Outvalue Cryptocurrencies

Chainlink co-founder Sergey Nazarov predicts that tokenized real-world assets (RWAs) will soon surpass cryptocurrencies in value.

He attributes this potential shift to the growing interest from traditional finance (TradFi) in decentralized finance (DeFi) and asset tokenization.

Nazarov believes that the convergence of DeFi and TradFi will create a highly interconnected financial ecosystem. At Token2049 in Singapore, he emphasized how DeFi’s ability to offer yield and establish reliable markets for RWAs aligns well with the needs of traditional finance. Chainlink, according to Nazarov, is well-positioned to capitalize on this transition.

He highlighted that decentralized technologies like Chainlink and smart contracts are revolutionizing the financial sector by minimizing reliance on human intermediaries. This shift improves efficiency and reduces the risks associated with traditional financial models, which are often plagued by delays and uncertainties.

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Nazarov’s insights echo his August predictions that tokenized RWAs would eclipse the value of cryptocurrencies by 2027, fueled by institutional interest and integration with TradFi. The RWA market is already valued at $2.22 billion, reflecting significant growth.

As blockchain technology continues to address the infrastructure challenges of traditional finance, it is also paving the way for new investment opportunities. Nazarov pointed out that blockchain’s efficiency and streamlined workflows are central to this transformation.

Despite the potential, transitioning to a fully digital financial infrastructure presents challenges, including legal issues, identity standards, and data privacy concerns. Both TradFi and DeFi sectors must collaborate to build secure and compliant systems to realize Nazarov’s vision.

Alexander Stefanov