Chainlink Co-Founder Sergey Nazarov Sees RWA Growth

• Chainlink co-founder Sergey Nazarov has predicted a bullish future for tokenized RWA.
• The Oracle protocol will play a key role in this positive future.

Sergey Nazarov, the co-founder of the decentralized Oracle network Chainlink (LINK), has once again illuminated the potential of tokenizing Real-Word Assets (RWA). In a recent Defiant YouTube interview, Nazarov highlighted RWA’s growth, stating that it has surpassed the total value locked on Decentralized Finance (DeFi).

TradFi to Become the Biggest User of DeFi

Nazarov says the total value of tokenized RWAs will surpass the total value of crypto over the next one to three years. He noted that the TradFi industry will play a major role in this trend by converting users’ assets into blockchain-based RWAs. 

According to him, Traditional Finance (TradFi) will be the biggest crypto user in the future. He believes many of these users will encompass big asset managers and banks. He highlighted the possibility of customers of these institutions using their accounts for crypto-related transactions.

“So the first category is the retail consumer using more DeFi, using more public chains where the user experience around private keys really still needs to be improved,” says Nazarov. 

According to him, the other group is the capital markets TradFi users. He pointed out that many may not realize they are using a blockchain-based asset or getting their yield from a DeFi protocol. “But they will be a user of it,” Nazarov noted.

He expressed uncertainty regarding which of the two groups will have a larger percentage of the next billion crypto users. Still, he thinks a double-digit percentage will come from both of them. He stated that the public chain Web3 retail community side may ultimately see more individuals. However, he emphasized that the TradFi capital market may see more value from fewer users.

Chainlink’s Development in Tokenization

The Chainlink co-founder also noted that the goal “is not about DeFi killing TradFi, but TradFi becoming the biggest user of DeFi.” According to him, Chainlink is already playing a major role in this trend, helping to create connectivity standards that RWAs can move across.

As previously mentioned in our report, Chainlink partnered with Sohoo.io, a blockchain-based financial technology firm, to build tokenized assets. According to the details, the partnership will focus on emerging Asian crypto markets, such as Japan, South Korea, and Thailand.

The partnership will focus on introducing Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to Korean financial institutions. As discussed earlier, CCIP provides a unified approach to asset transfers and helps meet possible regulations. As a result, the protocol assures that all transactions are secure and easily traceable over several blockchains.

Meanwhile, Chainlink’s attention and developments in the tokenization industry helped fuel positive sentiments in the network. This optimism has impacted LINK, leading to a bullish rebound.

At press time, LINK was trading at $10.41, demonstrating a 1.65% surge in the past week. LINK is now ranked the 15th-largest digital asset by market cap, with a valuation of $6.3 billion.

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