Chainlink CEO sees real-world assets surpassing crypto by 2027

Chainlink (CRYPTO:LINK) CEO Sergey Nazarov predicts that tokenized real-world assets (RWAs) could surpass the total value locked in cryptocurrencies by 2027, driven by increasing interest from the traditional finance (TradFi) sector.

Nazarov believes that as RWAs continue to gain traction, they will play a pivotal role in integrating TradFi with decentralized finance (DeFi) protocols, potentially making TradFi the largest user of DeFi platforms.

Nazarov highlights that RWAs have already begun to outpace DeFi in terms of value, even though they currently represent only a fraction of what can be tokenized.

He suggests that this trend will not only redefine the blockchain industry but also lead to the adoption of Central Bank Digital Currencies (CBDCs), further enhancing on-chain purchasing power and attracting more value into DeFi systems.

The Chainlink CEO also anticipates the emergence of more blockchains, driven by lower costs and ease of development, which will be interconnected through protocols like Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

This interconnectedness is expected to simplify app development and compliance, allowing for a larger share of value to flow through regulated transactions.

Nazarov envisions a growing acceptance of blockchain technology by governments, particularly in Asia and the Middle East, where infrastructure modernization is actively underway.

He predicts a corridor of blockchain-based activity between these regions, involving real-world assets and commodities.

Institutional interest in tokenized RWAs is on the rise, with major players like BlackRock, Grayscale, and Franklin Templeton leading the charge.

The sector’s market cap recently surpassed $10 billion, reflecting the growing connection between TradFi and DeFi.

However, challenges remain, particularly around the legal recognition of tokens and the security of smart contracts, which could impact the widespread adoption of RWAs in both traditional and decentralized finance sectors.

At the time of writing, the Chainlink price was $11.18.