As markets reel from geopolitical tensions and economic uncertainty, Bitcoin has shown relative resilience during events like Trump’s recent tariff bombshells, according to Blockstream CEO Adam Back.

While in the short term, Bitcoin (BTC) may move in tandem with stocks and other risk-on assets, Back sees the long-term trend telling a different story.

“Bitcoin is fully decoupled because it’s gone up five or six times since the bottom of the market three years ago,” he said during an exclusive interview with Cointelegraph at Paris Blockchain Week.

Back, who is one of the original cypherpunks and a key contributor to Bitcoin’s early development, predicts strong adoption tailwinds for BTC: regulatory clarity, institutional interest, and the legitimizing force of exchange-traded funds (ETFs). He notes that while most long-term holders are already “all in” and unable to buy dips, entities like BlackRock and sovereign wealth funds are stepping in, quietly absorbing supply.

The Blockstream CEO also touches on the geopolitical dimension, discussing a scenario in which governments may begin actively acquiring Bitcoin. “If the US government doesn’t go on a buying spree and buy 1 million Bitcoin over the next five years, that gives more time for the new entrants who’ve got access finally through brokers and through the ETFs to build up the Bitcoin position.”

Despite short-term volatility, Back remains firmly bullish on the mid-term outlook: “Typically, there would be half a dozen 30% drops in a bull market, so I think that’s probably where we are now.”

Watch the full interview now on the Cointelegraph’s YouTube channel — and subscribe for more exclusive conversations with the biggest names in crypto.

Opinion by: Sergej Kunz, co-founder of 1inch

Institutional players have been closely watching decentralized finance’s growth. Creating secure and compliant DeFi platforms is the only solution to build trust and attract more institutions.

Clear waters attract big ships

Over the past four years, institutional DeFi adoption has gone from 10% of hedge funds to 47%, and is projected to rise to 65% in 2025. Goldman Sachs is reaching their arms to DeFi for bond issuance and yield farming. 

Early adopters are already positioning themselves in onchain finance, including Visa, which has processed over $1 billion in crypto transactions since 2021 and is now testing cross-border payments. In the next two years, institutional adoption will speed up. A compliant regulatory framework that maintains DeFi’s core benefits is necessary for institutional adoption to engage confidently. 

DeFi’s institutional trilemma

It is no secret that many DeFi security exploits happen every year. The recent Bybit hack reported a $1.4 billion loss. The breach occurred through a transfer process that was vulnerable to attack. Attacks like these raise concerns about multisignature wallets and blind signing. This happens when users approve transactions without full details, rendering blind signing a significant risk. This case calls for stronger security measures and improvements in user experience.

The threats of theft due to vulnerabilities in smart contracts or mistakes by validators make institutional investors hesitate when depositing large amounts of money into institutional staking pools. Institutions are also at risk of noncompliance due to a lack of clear regulatory frameworks, creating hesitation to enter the space. 

The user interface in DeFi is often designed for users with technical expertise. Institutional investors require user-friendly experiences that make DeFi staking possible without relying on third-party intermediaries.

Build it right, and they will come

Institutional interest in bringing traditional assets onchain is enormous, with the tokenized asset market estimated to reach $16 trillion by 2030. To confidently participate in DeFi, institutions need verifiable counterparties that are compliant with regulatory requirements. The entry of traditional institutional players into DeFi has led some privacy advocates to point out that it can counter the essence of decentralization, which forms the bedrock of the ecosystem.

Recent: Securitize to bring BUIDL tokenized fund to DeFi with RedStone price feeds

Institutions must be able to trust DeFi platforms to maintain compliance standards while providing a safe and seamless user interface. A balanced approach is key. DeFi’s permissionless nature can be achieved while maintaining compliance through identity profiles, allowing secure transactions. Similarly, transaction screening tools facilitate real-time monitoring and risk assessment. 

Blockchain analytics tools help institutions to maintain compliance with Anti-Money Laundering regulations and prevent interaction with blacklisted wallets. Integrating these tools can help detect and prevent illicit activity, making DeFi safer for institutional engagement.

Intent-based architecture can improve security

The relationship between intent-based architecture and security is evident; the very design is built to reduce risks, creating a more reliable user experience. This protects the user against MEV exploits, a common issue of automated bots scanning for large profitable trades that can be exploited. Intent-based architecture also helps implement compliance frameworks. For instance, restricting order submissions to clean wallets and allowing resolvers to settle only the acceptable orders.

It’s well understood that in traditional DeFi transactions, users rely often on intermediaries like liquidity providers to execute trades or manage funds. This leads to counterparty risk, unauthorized execution and settlement failure. The intent-based architecture supports a trustless settlement that ensures users commit only when all conditions are met, reducing risk and removing blind trust from the picture.

DeFi platforms must simplify interactions and UX for institutional investors. This system bridges the gap between. Through executing offchain while ensuring security, the intent-based architecture makes DeFi safer and more efficient. However, one of the challenges to this includes integrating offchain order matching while maintaining onchain transparency.

Late adopters of DeFi will struggle to keep up

For the early adopters of DeFi, there is a competitive advantage in liquidity access and yield advantages, whereas late adopters will face more regulatory scrutiny and entry barriers. By 2026, the institutional players that have failed to adopt DeFi may struggle to keep up. This is seen in the examples of early adopters like JPMorgan and Citi’s early tokenization projects. TradFi leaders like them are already gearing up for onchain finance.

The way forward

Regulatory bodies, supervisory agencies and policy leaders must provide clear, standardized guidelines to facilitate broader institutional participation. Uniform protocols underpinning wider institutional involvement are underway. DeFi platforms must be prepared beforehand to provide all the necessary pillars of compliance and security to institutional players who want to embrace mainstream adoption. Executing this shall require combined efforts from regulators, developers and institutions.

Opinion by: Sergej Kunz, co-founder of 1inch.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Binance is launching a new “reward-bearing margin asset” LDUSDt, which the company says is not a stablecoin.

According to an April 9 announcement, LDUSDt can be obtained by swapping Tether’s USDt deposited in the firm’s Simple Earn yield product. Binance stated that holders of LDUSDt will continue to earn yield rewards through Simple Earn, even while using the token for margin trading.

This marks the second time Binance has launched a reward-bearing margin asset. Binance launched its first reward-bearing margin asset, BFUSD, in 2024. At the time of the launch, Binance had stepped in to clarify that “it is not a stablecoin” in response to user concerns and comparisons to the failed TerraUSD (UST) token.

In its latest announcement, Binance preemptively reiterated that LDUSDt is not a stablecoin:

“LDUSDT is not a stablecoin but a crypto asset that can be used as Futures trading margin, while allowing users to earn Simple Earn Real-Time APR rewards.“

Related: Binance to purge 14 tokens following ‘vote to delist’ process

A deeply integrated token

According to Binance, LDUSDt can be used as a margin asset in multi-asset mode on the exchange’s futures platform. It also accrues real-time annual percentage yield rewards.

The exact launch time is yet to be determined, with the announcement noting that it “will be available on the Binance website and app soon.” A Binance spokesperson told Cointelegraph:

“[LDUSDt] gives users’ USDT more utility by converting it into a tradable asset for Futures, without losing access to their ongoing rewards. When users swap their subscribed USDT for LDUSDT, the funds are automatically moved into their Futures Wallet, where they can be used as margin in Multi-Asset Mode.“

Binance had not responded to Cointelegraph’s questions regarding potential risk implications associated with this system by the time of publication.

Related: Nigerian court postpones Binance tax evasion case to end of April: Report

Binance continues to dominate crypto markets

Binance remains the world’s largest cryptocurrency exchange by trading volume. According to CoinGecko, the platform processed more than $16.5 billion in trades over a 24-hour period. Bitget followed with just under $5 billion in volume.

Data provided by the more popular but Binance-owned CoinMarketCap shows that $24.6 billion worth of trades took place on the exchange over the last 24 hours. The platform shows only $3.84 billion worth of trades on Bitget in the previous 24 hours.

Despite ongoing legal and regulatory challenges in multiple jurisdictions, Binance continues to grow its global influence. According to recent reports, the firm’s former CEO, Changpeng “CZ” Zhao, will begin advising the Kyrgyz Republic on blockchain and crypto-related regulation and tech after signing a memorandum of understanding with the country’s foreign investment agency.

Meanwhile, current CEO Richard Teng remains in the spotlight. In late March, Teng denied reports that Binance.US was in deal talks with entities affiliated with US President Donald Trump during a March 18 panel at Blockworks’ 2025 Digital Asset Summit in New York.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

The European Central Bank is intensifying its warnings over stablecoin adoption, with one of its top officials calling for a digital euro to curb the influence of US dollar-pegged stablecoins across the continent.

ECB executive board member Piero Cipollone has penned another article highlighting concerns over the growing popularity of US dollar stablecoins, arguing that launching a central bank digital currency (CBDC) could help preserve the eurozone’s monetary sovereignty.

A potential digital euro “would limit the potential for foreign currency stablecoins to become a common medium of exchange within the euro area,” Cipollone wrote in a statement published April 8 on the ECB’s official website.

The remarks follow a string of similar public statements from Cipollone, who has been a vocal advocate for a digital euro as a strategic response to the dominance of dollar-backed stablecoins in Europe.

A “public-private partnership to retain sovereignty”

In the latest piece, Cipollone reiterated that excessive reliance on foreign providers — including stablecoins as well as international card schemes — compromises the monetary sovereignty of Europe.

“It also underscores the urgent need for a digital euro. Failing to act would not only expose us to significant risks but also deprive us of a great opportunity,” the central banker said.

ECB’s executive board member Piero Cipollone. Source: Bloomberg

Cipollone also cited concerns about the United States’ increasingly crypto-friendly stance under the current administration, including efforts to promote dollar-based stablecoins globally.

Related: Lawmaker alleges Trump wants to replace US dollar with his stablecoin

“They could potentially result not just in further losses of fees and data, but also in euro deposits being moved to the US and in a further strengthening of the role of the dollar in cross-border payments,” he said, adding:

“Faced with these challenges, we need a public-private partnership to retain our sovereignty. The digital euro — as a sovereign European means of payment based on EU legislation —  would be the cornerstone of this partnership.”ECB wants to promote cash but can’t do it online

Cipollone also highlighted the “vital role of cash” in ensuring financial inclusion and resilience, stating that cash remains a “cornerstone of the European financial system” and is its only sovereign means of payment.

However, a growing preference for digital payments has limited the use of cash amid the rapid growth of online shopping, which now accounts for one-third of European retail transactions, he said.

“Cash cannot be used online, and it is often not possible to pay using a European payment service, meaning we need to rely on non-European payment systems,” Cipollone added.

“The time to act is now,” he said. “Making progress on both the digital euro regulation and the regulation on the legal tender status of cash has become urgent if we are to increase our resilience to possible disruptions and reverse our ever-increasing dependence on foreign companies.”

Despite the ECB’s ongoing efforts, the proposed digital euro has faced criticism and skepticism among European consumers, especially around data privacy concerns.

An ECB working paper on the digital euro published in March showed that European consumers are not interested in adopting a digital euro, with many seeing little value in the potential CBDC.

Magazine: Stablecoin for cyber-scammers launches, Sony L2 drama: Asia Express

The European Central Bank is intensifying its warnings over stablecoin adoption, with one of its top officials calling for a digital euro to curb the influence of US dollar-pegged stablecoins across the continent.

ECB executive board member Piero Cipollone has penned another article highlighting concerns over the growing popularity of US dollar stablecoins, arguing that launching a central bank digital currency (CBDC) could help preserve the eurozone’s monetary sovereignty.

A potential digital euro “would limit the potential for foreign currency stablecoins to become a common medium of exchange within the euro area,” Cipollone wrote in a statement published April 8 on the ECB’s official website.

The remarks follow a string of similar public statements from Cipollone, who has been a vocal advocate for a digital euro as a strategic response to the dominance of dollar-backed stablecoins in Europe.

A “public-private partnership to retain sovereignty”

In the latest piece, Cipollone reiterated that excessive reliance on foreign providers — including stablecoins as well as international card schemes — compromises the monetary sovereignty of Europe.

“It also underscores the urgent need for a digital euro. Failing to act would not only expose us to significant risks but also deprive us of a great opportunity,” the central banker said.

ECB’s executive board member Piero Cipollone. Source: Bloomberg

Cipollone also cited concerns about the United States’ increasingly crypto-friendly stance under the current administration, including efforts to promote dollar-based stablecoins globally.

Related: Lawmaker alleges Trump wants to replace US dollar with his stablecoin

“They could potentially result not just in further losses of fees and data, but also in euro deposits being moved to the US and in a further strengthening of the role of the dollar in cross-border payments,” he said, adding:

“Faced with these challenges, we need a public-private partnership to retain our sovereignty. The digital euro — as a sovereign European means of payment based on EU legislation —  would be the cornerstone of this partnership.”ECB wants to promote cash but can’t do it online

Cipollone also highlighted the “vital role of cash” in ensuring financial inclusion and resilience, stating that cash remains a “cornerstone of the European financial system” and is its only sovereign means of payment.

However, a growing preference for digital payments has limited the use of cash amid the rapid growth of online shopping, which now accounts for one-third of European retail transactions, he said.

“Cash cannot be used online, and it is often not possible to pay using a European payment service, meaning we need to rely on non-European payment systems,” Cipollone added.

“The time to act is now,” he said. “Making progress on both the digital euro regulation and the regulation on the legal tender status of cash has become urgent if we are to increase our resilience to possible disruptions and reverse our ever-increasing dependence on foreign companies.”

Despite the ECB’s ongoing efforts, the proposed digital euro has faced criticism and skepticism among European consumers, especially around data privacy concerns.

An ECB working paper on the digital euro published in March showed that European consumers are not interested in adopting a digital euro, with many seeing little value in the potential CBDC.

Magazine: Stablecoin for cyber-scammers launches, Sony L2 drama: Asia Express

Core, a proof-of-stake blockchain built on Bitcoin, has surpassed $260 million in dual-staked assets as institutional interest in Bitcoin-based decentralized finance (DeFi) continues to grow.

Core’s initial contributor, Rich Rines, told Cointelegraph that as of April 7, over 44 million Core tokens have been dual-staked with 3,140 Bitcoin (BTC). At the time of writing, the assets are worth about $260 million. 

Core’s dual-staking model lets Bitcoin holders earn higher yields with CORE tokens. While users can stake BTC at a lower rate, those who stake BTC with Core tokens get an enhanced yield. 

“Dual Staking can multiply base staking rewards over 15 times, depending on how many CORE tokens are staked,” Core said in a statement. 

Core’s new milestone highlights growing demand for Bitcoin staking

The latest milestone was driven in part by institutional investors integrating Core’s staking model into their platforms.

Core Foundation said that major custodians like BitGo, Copper and Hex Trust have enabled their clients to gain access to the protocol by integrating dual staking. Core added that it had partnered with Maple Finance for a structured asset that uses Core’s dual-staking to generate yield. 

Rines told Cointelegraph that institutions have been crucial catalysts to the early success of its dual staking model. He said the model unlocks new opportunities for institutions.  

“This shift has broader implications for the Bitcoin ecosystem. Historically, institutional BTC holdings required paying custody fees without generating yield,” Rines told Cointelegraph.

He added that by integrating Core’s staking model, institutions can turn Bitcoin into a yield-bearing asset that offsets costs and unlocks new capital efficiencies.

At the time of writing, Core holds the biggest total value locked (TVL) among Bitcoin sidechains. Footprint analytics puts Core’s TVL above $400 million, with a market share of 28%.  

Distribution of chain TVLs among Bitcoin sidechains. Source: Footprint Analytics

Related: Bitcoin ETFs lose $326M amid ‘evolving’ dynamic with TradFi markets

Bitcoin becoming “productive” 

The Core team said the increase in the number of dual-staked CORE tokens highlights how the product fulfills its design. Rines told Cointelegraph: 

“The 44 million+ CORE tokens dual-staked to date show real adoption of the model. It reflects that users, both retail and institutional, are actively looking to put their Bitcoin to work securely and sustainably.”

Rines emphasized that Core’s dual-staking system offers a sustainable utility for long-term Bitcoin holders without requiring them to relinquish custody.

“This is Bitcoin becoming productive, not by trusting third parties, but by participating in a system designed to reward real alignment and long-term engagement,” Rines said.

Magazine: New ‘MemeStrategy’ Bitcoin firm by 9GAG, jailed CEO’s $3.5M bonus: Asia Express

Update April 9, 1:38 pm UTC: This article has been updated to include the latest developments on US import tariffs.

The global trade war may be a silver lining for Bitcoin’s growing recognition as a safe-haven asset next to gold, thanks to its liquidity and accessibility advantages compared with precious metals.

Financial markets have been rattled since US President Donald Trump’s April 2 reciprocal import tariffs announcement, leading to record-breaking sell-offs for traditional stock markets and a Bitcoin (BTC) correction below $75,000.

While gold remains the dominant refuge for investors during geopolitical stress, analysts say Bitcoin’s digital nature and 24/7 liquidity are helping it attract renewed interest.

“You want to store value in something other than US assets. But you don’t want to own other nations’ currencies/debt/assets because they’re even weaker and you expect they’ll debase it,” said Hunter Horsley, CEO of crypto asset manager Bitwise, in an April 9 post on X.

“You look around, and you see it: an asset that can’t be debased, is controlled by no country, and that you can take into your possession immediately. You wind up buying Bitcoin,” Horsely said.

Source: Hunter Horsley

Despite the growing optimism, gold will likely remain the dominant asset, especially in the near term, Aurelie Barthere, principal research analyst at Nansen crypto intelligence platform, told Cointelegraph, adding:

“Bitcoin is promising, but it’s still quite volatile, it could get there gradually. The PBOC has been shedding US Treasury holdings and increasing gold reserves for years. Therefore, I expect this trend to accelerate regardless of the crypto narrative.”

Related: 4th gen crypto needs collaborative tokenomics against tech giants — Hoskinson

China’s Finance Ministry on April 9 announced new tariffs of up to 84% on US imports, effective April 10, as a retaliatory measure against Trump’s policy. Analysts say a resolution would reduce uncertainty and reignite appetite for risk assets like crypto.

China’s tariffs come as a retaliatory response to Trump’s plan to impose import tariffs of up to 104% on Chinese goods, press secretary Karoline Leavitt told the Guardian on April 8.

Some industry analysts see Trump’s global tariff negotiations as mere “posturing” for the US to reach an agreement with China, a development that may end global trade uncertainty and see risk assets such as crypto recover.

Related: Bitcoin ETFs lose $326M amid ‘evolving’ dynamic with TradFi markets

China, Russia reportedly using Bitcoin for settlement

Some nations are already taking steps toward using crypto assets for settlement in global trade.

“China and Russia have reportedly begun settling some energy transactions in Bitcoin and other digital assets,” wrote Matthew Sigel, head of digital assets research at VanEck, in an April 8 note. “These are early signs that Bitcoin is evolving from a speculative asset into a functional monetary tool.”

Sigel noted other examples, including Bolivia’s plans to import electricity using crypto and French utility firm EDF’s exploration of using surplus power to mine Bitcoin.

“These developments reflect a growing interest in neutral settlement rails, especially among economies looking to bypass the US dollar,” he said.

Previous reports also indicated that Russia is using Bitcoin and stablecoin for international oil trade to circumvent global sanctions.

Bitcoin’s evolving “volatility profile” also points to BTC “gradually maturing from a risky asset to a safe-have asset,” wrote André Dragosch, macro analyst and European head of research at Bitwise.

While the tariff uncertainty will continue limiting risk appetite during the negotiations, positive developments could bring renewed investment into crypto markets.

“We’ll start to see the rotation toward the crypto markets in the coming period where there’s more calm and peace in the markets where investors start to buy the dip and understand that some things have been undervalued,” Michaël van de Poppe, founder of MN Consultancy, told Cointelegraph.

Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29

Blockchain may soon earn itself a role in New York State’s voting processes and procedures.

New York Assemblymember Clyde Vanel introduced Bill A07716 on April 8, directing the state Board of Elections to evaluate how blockchain could help protect voter records and election results. The legislation is currently under consideration by the Assembly Election Law Committee.

According to the bill’s summary, the goal is to “study and evaluate the use of blockchain technology to protect voter records and election results.“

The bill mandates that the Board of Elections produce a report within one year assessing the potential benefits of blockchain in securing election data. The study must include input from experts in blockchain, cybersecurity, voter fraud and election recordkeeping.

Bill text. Source: New York State Assembly

Related: Ripple announces money transmitter licenses in Texas and New York

Blockchain applications in elections

This is not the first initiative attempting to bring the tamper-proof features of blockchain technology to the voting process. In early March, the Bitcoin network was used to secure and store the results of the Williamson County, Tennessee, Republican Party Convention’s election to determine the leadership and board of the local party chapter.

About a year ago, Brian Rose — an independent mayoral candidate in London — told Cointelegraph that blockchain-based voting systems could foster more transparency and public trust in the election process:

“Wouldn’t we all sleep better at night if the voting system was on the blockchain and you could really prove that identity and you could actually prove that vote and there would be an immutable record? This is the future and I think it takes someone like me who comes from a business background who’s intimately involved in the blockchain.”

Still, experts caution that blockchain systems are only as reliable as the data input into them, a concept often summarized as “garbage in, garbage out.” While blockchain offers tamper-resistant storage, it does not guarantee the integrity of the original data submission.

Related: Election tally: Does blockchain beat the ballot box?

A crypto-conscious assemblymember

Vanel is no stranger to blockchain-related initiatives, having introduced a bill in early March that would establish criminal penalties to prevent cryptocurrency fraud and protect investors from rug pulls. In January, he also stated that New York became the first US state to create a cryptocurrency task force to study the regulation, use and definition of digital currency.

He has also been a vocal commenter on the industry and its relationship with policymakers. In May 2019, Vanel said that the blockchain industry needs to be better at lobbying for itself and educating regulators.

Magazine: 3 reasons Ethereum could turn a corner: Kain Warwick, X Hall of Flame

Blockchain may soon earn itself a role in New York State’s voting processes and procedures.

New York Assemblymember Clyde Vanel introduced Bill A07716 on April 8, directing the state Board of Elections to evaluate how blockchain could help protect voter records and election results. The legislation is currently under consideration by the Assembly Election Law Committee.

According to the bill’s summary, the goal is to “study and evaluate the use of blockchain technology to protect voter records and election results.“

The bill mandates that the Board of Elections produce a report within one year assessing the potential benefits of blockchain in securing election data. The study must include input from experts in blockchain, cybersecurity, voter fraud and election recordkeeping.

Bill text. Source: New York State Assembly

Related: Ripple announces money transmitter licenses in Texas and New York

Blockchain applications in elections

This is not the first initiative that attempts to bring the tamper-proof features of blockchain technology to the voting process. In early March, the Bitcoin network was used to secure and store the results of the Williamson County, Tennessee Republican Party Convention’s March 4 election to determine the leadership and board of the local party chapter.

About a year ago, Brian Rose — an independent mayoral candidate in London — told Cointelegraph that blockchain-based voting systems could foster more transparency and public trust in the election process:

“Wouldn’t we all sleep better at night if the voting system was on the blockchain and you could really prove that identity and you could actually prove that vote and there would be an immutable record? This is the future and I think it takes someone like me who comes from a business background who’s intimately involved in the blockchain.”

Still, experts caution that blockchain systems are only as reliable as the data input into them — a concept often summarized as “garbage in, garbage out.” While blockchain offers tamper-resistant storage, it does not guarantee the integrity of the original data submission.

Related: Election tally: Does blockchain beat the ballot box?

A crypto-conscious assemblymember

Vanel is no stranger to blockchain-related initiatives, having introduced a bill that would establish criminal penalties to prevent cryptocurrency fraud and protect investors from rug pulls in early March. In January, he also stated that New York became the first US state to create a cryptocurrency task force to study the regulation, use and definition of digital currency.

He has also been a vocal commenter on the industry and its relationship with policymakers for years. In May 2019, Vanel said that the blockchain industry needs to be better at lobbying for itself and educating regulators.

Magazine: 3 reasons Ethereum could turn a corner: Kain Warwick, X Hall of Flame

As more institutions explore blockchain-based finance, some industry leaders say tokenized real-world assets (RWAs) may surpass $30 trillion by the 2030s. Others are casting doubt on that projection.

In June 2024, Standard Chartered Bank and Synpulse predicted that RWAs may reach over $30 trillion by 2034. The narrative remained strong in the latter part of 2024, with some analysts expressing similar sentiments.

At Paris Blockchain Week 2025, a panel moderated by Cointelegraph’s managing editor, Gareth Jenkinson, brought together executives from across the tokenization ecosystem to discuss the future of RWAs. Participants included Charles Adkins of Hedera, Dotun Rominiyi from the London Stock Exchange, Shy Datika of INX, Steven Gaertner of Tiamonds and Securitize chief operating officer Michael Sonnenshein.

While the majority supported the $30 trillion estimate, Sonnenshein expressed skepticism.

The Truth Behind Tokenization and RWA panel. Source: Paris Blockchain Week

Securitize exec predicts a more conservative trajectory for RWAs

Sonnenshein, a former CEO of Grayscale Investments, said tokenized assets may not reach the $30 trillion mark. He argued that there are many “good systems” in place that already work for traditional assets:

“I have to just say, at the moment there obviously are some really good systems in place that allow some of these assets to trade. So, just because it can be tokenized doesn’t mean that it should be. And so, I’ll take the under on the $30 trillion number.”

Despite being an outlier in his predictions, Sonnenshein said he’s still bullish on RWAs, adding that his sentiment “doesn’t mean that tokenization isn’t here to stay.” 

Sonnenshein said that the space will still see a major explosion of investors who will see their wallets as not just a place for crypto speculation but also a “place that actually houses investments of theirs the way their brokerage accounts or investment accounts would as well.”

Related: BlackRock’s BUIDL expands to Solana as tokenized money market fund nears $2B

Tokenization doesn’t “translate well” to representing real estate ownership

Sonnenshein also questioned the viability of real estate as a primary use case for RWAs.

In the United Arab Emirates, government agencies have made moves to link tokenization with real estate. In January, local real estate developer Damac signed a $1 billion deal with RWA blockchain Mantra to tokenize real estate in the UAE. 

While some put their money on tokenized real estate, Sonnenshein cast doubt on the idea. “I’ll be the controversial one up here and just say I don’t think tokenization should have its eyes directly set on real estate,” he said during the panel. 

While the executive recognized the benefits of tokenizing real estate, he argued that this doesn’t translate well to representing ownership. 

“I’m sure there are all kinds of efficiencies that can be unlocked using blockchain technology to eliminate middlemen and escrow and all kinds of things in real estate. But I think today, what the onchain economy is demanding are more liquid assets,” he added. 

Magazine: New ‘MemeStrategy’ Bitcoin firm by 9GAG, jailed CEO’s $3.5M bonus: Asia Express