Sergey Nazarov, the co-founder of Chainlink, emphasized that the United States needs to establish a competitive advantage around the tokenization of real-world assets on the blockchain to compete in the borderless financial world. According to him, blockchain is a global phenomenon, relying on open-source software and distributed technology. Unlike previous technological shifts, the transition to e-commerce did not provide an advantage for the United States in the current digital finance era. He also noted that the United States should focus on its strengths, such as a strong domestic market and the ability to create reliable financial assets.
Nazarov predicted that tokenized real-world assets could become a $100 trillion market as assets around the world are brought onto the blockchain. Currently, significant progress has been made, with tokenized real-world assets reaching a record high of $18.8 billion in 2025, with private credit accounting for the majority at $12.2 billion.
Asset tokenization can make previously illiquid asset classes, such as real estate, more liquid, eliminating the illiquidity discount inherent in physical assets. For example, Polygon's technology has been used to tokenize the Lumia Towers project in Turkey and the real estate market in the United Arab Emirates. Advanced digital asset regulations are driving the explosion of tokenized real-world assets in this region as institutional investors and developers seek alternative fundraising methods.
These regions are not only rapidly adopting new technologies but are also witnessing a significant transformation in the way financial assets are created and managed. In some regions, proactive regulation of digital assets is serving as a catalyst for the robust development of the market, especially as investors seek more efficient methods of capital raising and asset distribution.