Emma Nelson 
Mike Novogratz, the founder and CEO of Galaxy Digital, has once again emphasized his belief in the rapid growth of real-world asset (RWA) tokenization, especially after BlackRock’s tokenized fund, BUIDL, crossed the $1 billion mark in assets under management (AUM). A staunch advocate for the integration of blockchain technology into traditional finance, Novogratz argues that tokenization will fundamentally transform the financial landscape.
Mike Novogratz
Mike Novogratz’s Vision for RWA Tokenization Novogratz has long championed the potential of blockchain to revolutionize financial markets. He asserts that any asset that can be tokenized will eventually be moved onto the blockchain. In a recent statement on X, he highlighted the expanding role of blockchain in financial infrastructure, specifically in the growing trend of asset tokenization. According to Novogratz, blockchain technology offers unparalleled transparency, efficiency, and security, making it an ideal solution for financial institutions seeking to modernize their processes. He firmly believes that tokenization is no longer just a theoretical idea but a practical and accelerating movement that is gaining traction across various financial sectors. He also predicts that blockchain-based financial products will soon become essential tools for institutional investors, driven by the demand for improved liquidity and streamlined settlement processes.
Novogratz’s perspective aligns with a broader trend where financial institutions are increasingly turning to tokenized assets. Several large firms have already integrated blockchain technology into their asset management strategies, and Novogratz expects this adoption to pick up pace in the coming years. He attributes the accelerated shift to the rapid development of blockchain infrastructure, which is vital to the mainstream adoption of RWAs.
The Success of BlackRock’s BUIDL Fund In the midst of this growing trend, BlackRock’s BUIDL fund has reached a significant milestone, surpassing $1 billion in assets under management. Launched in March 2024, in collaboration with Securitize, BUIDL is an ERC-20 token built on the Ethereum blockchain. The fund gives institutional investors exposure to U.S. Treasury bills and repurchase agreements, utilizing blockchain technology to enhance security and liquidity. One key factor driving the growth of BUIDL was the introduction of the Frax Finance stablecoin, which uses BUIDL as its backing reserve, highlighting the increasing demand for tokenized financial products.
Through tokenizing U.S. Treasury assets, BlackRock aims to improve liquidity, streamline transactions, and mitigate counterparty risks. The success of BUIDL demonstrates the broader industry’s shift toward blockchain-based investment vehicles. Furthermore, BlackRock’s CEO, Larry Fink, urged the U.S. Securities and Exchange Commission (SEC) to approve the tokenization of bonds and stocks, believing that such approval would further accelerate the momentum for RWAs.
Other Firms Embracing Tokenization Several other major financial institutions are also adopting tokenization strategies, aligning with Novogratz’s vision. Ripple Labs, known for its blockchain-based payment solutions, has been expanding its focus on tokenized assets. In November 2024, Ripple launched its first tokenized money market fund on the XRP Ledger, in partnership with the crypto exchange Archax and UK asset manager abrdn. Ripple has also expressed confidence in the potential of RWAs to drive the future of finance.
Additionally, Ripple launched the RLUSD stablecoin in December 2024, with plans to expand further. As reported by CoinGape, Ripple had minted 6.5 million RLUSD on Ethereum, signaling the growing reach of this product and its potential to support further tokenization efforts.
As Novogratz predicted, the adoption of tokenized assets continues to gain momentum, with BlackRock and Ripple leading the charge. This shift toward tokenization is poised to reshape the global financial system, providing more liquidity, transparency, and efficiency in asset management.
