Securitize COO Skeptical of Real Estate Tokenization Reaching $30 Trillion by 2034
1min read Michael Sonnenshein, the Chief Operating Officer of Securitize, has expressed skepticism about the viability of real estate as a primary use case for Real-World Asset (RWA) tokenization. His comments came during a panel discussion at Paris Blockchain Week 2025, where industry leaders gathered to discuss the future of rwas. While many participants supported the projection that tokenized RWAs could reach over $30 trillion by 2034, Sonnenshein offered a more conservative outlook.
Sonnenshein argued that traditional systems for trading assets are already effective, and tokenization does not necessarily mean that it should be applied to all asset classes. He stated, "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 his cautious stance, Sonnenshein remains bullish on the overall potential of RWAs, predicting a significant influx of investors who will view their wallets as places for both crypto speculation and traditional investments.
One of the key points Sonnenshein raised was the complexity of tokenizing real estate. He acknowledged that while blockchain technology could bring efficiencies to real estate by eliminating middlemen and escrow processes, it does not translate well to representing ownership. Real estate assets are often illiquid, have high transaction costs, and require significant regulatory compliance, making the tokenization process more challenging compared to other asset classes. Additionally, the legal and regulatory frameworks governing real estate vary widely across different jurisdictions, adding another layer of complexity.
Ask Aime: What does Michael Sonnenshein mean by the "under" on the $30 trillion number for RWA tokenization?
Sonnenshein's perspective underscores the need for a more nuanced approach to RWA tokenization. He emphasized the importance of regulatory clarity and market infrastructure in the successful tokenization of assets. While the crypto industry has made significant strides, there is still a need for more robust regulatory frameworks and market infrastructure to support the tokenization of real-world assets. His comments serve as a reminder of the complexities and challenges associated with real estate tokenization, highlighting the need for a measured and thoughtful approach to this process.
In conclusion, Sonnenshein's cautious outlook on real estate tokenization is a call for a more nuanced understanding of the unique characteristics and challenges of different asset classes. While the crypto industry continues to explore the potential of RWA tokenization, it is crucial to approach this process with a clear understanding of the regulatory and market infrastructure requirements. Sonnenshein's insights provide valuable guidance for industry stakeholders as they navigate the complexities of tokenizing real-world assets. 
