, which has surged to nearly $34 billion, reflecting a remarkable 224% increase in 2024 alone. With projections estimating a valuation of $30 trillion by 2034, the implications for traditional finance (TradFi) are significant.){kind=link}
“Stablecoins were able to create this whole catalyst effect and now finally TradFi is understanding that this is not only one particular asset class, it’s basically financial infrastructure.” – 02:01
Sandeep Nailwal, CEO of the Polygon Foundation, joins Remy Blaire at the New York Stock Exchange to discuss the rapid growth in the market for tokenized real-world assets (RWAs), which has surged to nearly $34 billion, reflecting a remarkable 224% increase in 2024 alone. With projections estimating a valuation of $30 trillion by 2034, the implications for traditional finance (TradFi) are significant.
Sandeep shares insights into the increasing institutional adoption of tokenized treasuries and private credit, emphasizing the evolution of crypto from a speculative asset class to a vital financial infrastructure. He highlights the role of stablecoins as tokenized versions of fiat currencies and discusses the trend of tokenizing various financial instruments, including bank deposits and mutual funds, which enhances liquidity and creates new investment opportunities.
The conversation shifts to recent developments in the crypto space, including notable deals such as Circle’s public listing and the New York Stock Exchange’s investment in Polymarket. Sandeep reflects on the recent crypto flash crash, describing it as a chaotic event triggered by a stablecoin’s de-pegging, which led to a cascading effect across the market. He underscores the interconnectedness of the crypto ecosystem and the necessity for robust infrastructure to prevent similar incidents in the future.
Remy and Sandeep also delve into Polygon’s latest upgrade, Rio, which significantly enhances the blockchain’s transaction capacity from 200 to 5,000 transactions per second (TPS). This upgrade positions Polygon as one of the highest throughput chains in the industry, enabling applications like PolyMarket to scale effectively and serve a larger user base. Sandeep discusses the strategic focus on stablecoins and tokenization, which are crucial for driving volume and facilitating payments.
Additionally, they touch on Stripe’s recent launch of subscription services on Polygon, showcasing the platform’s growing utility in the fintech space. Sandeep highlights how major players are increasingly choosing Polygon for their blockchain needs, reinforcing the ecosystem’s commitment to utility over speculation.