The House Financial Services Committee to Hold Hearing on Real-World Asset Tokenization
The House Financial Services Digital Assets Subcommittee is set to convene a hearing on real-world asset (RWA) tokenization on June 5 to explore the potential benefits of this emerging sector.
Industry experts are scheduled to testify at the hearing, providing insights on how RWA tokenization can lead to more efficient markets. The decision to address RWA tokenization by the US government is seen as crucial due to the industry’s current size and projected growth.
Research conducted by global consulting firm Roland Berger indicates that the RWA tokenization industry was valued at $300 billion in 2023, with potential for exponential growth to reach $10 trillion by 2030.
In a recent development, BlackRock led a $47 million funding round for Securitize, a major player in RWA tokenization. This strategic partnership aims to digitize capital markets, making them more accessible and efficient.
Securitize CEO Carlos Domingo confirmed his participation as an expert witness at the upcoming House hearing, scheduled for May 31. Speculation has also been raised on whether someone from BlackRock will testify, though the company has not made any official statement on the matter.
Chainlink Labs, on the other hand, denied rumors of chief scientist Ari Juels attending the event, stating that they are unaware of any members from their firm participating in the hearing.
The House Financial Services Committee has not disclosed specific focus areas for the hearing yet. However, other government entities have shown interest in RWA tokenization. The Office of the Comptroller of the Currency (OCC) hosted a symposium on RWA tokenization in February, while the US Federal Reserve published a paper on tokenization in August 2023.
State-level initiatives have also been observed, with Iowa advancing a bill in February that redefines tokenized RWAs as personal property, signaling a permissive stance on the matter.
Overall, the upcoming House hearing on RWA tokenization is expected to shed light on the potential benefits and challenges of this rapidly expanding sector.
