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The US Congress will hear on tokenization of real-world assets on June 5

The U.S. House Financial Services Digital Assets Subcommittee will hold a hearing on real-world asset (RWA) tokenization on June 5 to discuss the potential benefits of the field. emerging area.

The country’s Congress will listen to presentations from industry experts at the hearing to determine the potential benefits of RWA tokenization in facilitating efficient markets.

The US government’s decision to address RWA tokenization is significant because of the scale and expected growth of the industry. Research from global consulting firm Roland Berger estimates the size of the industry at $300 billion by 2023, with the potential to grow 40-fold to $10 trillion by 2030.

Meanwhile, BlackRock recently led a $47 million funding round for Securitize, a key player in the RWA tokenization space. The partnership aims to digitize capital markets, making them more accessible and efficient.

BlackRock’s participation underscores the strategic focus on tokenizing RWA, which includes creating digital tokens for assets such as stocks and bonds, trading them on blockchain platforms.

List of expert witnesses subject not yet confirmed

Most of the expert witnesses at the upcoming House hearing have not been identified.

Securitize CEO Carlos Domingo confirmed he is expected to testify at a hearing on May 31 following speculations by Fox Business’s Eleanor Terret.

Domingo announced on social networks:

“I was one of the expert witnesses for this hearing and I am proud to represent the industry in such an important meeting.”

Terret also wondered if someone from BlackRock would testify. However, the company has not yet issued a statement on the matter as of press time.

Meanwhile, Chainlink Labs denied that chief scientist Ari Juels would attend the event.

According to a company spokesperson, Chainlink Labs does not know which members will attend the event and rumors of Juels’ appearance are “conjectures from the community.”

Broader U.S. government concerns

The US House Financial Services Committee has not yet clarified what aspects of RWA tokenization it will focus on. However, other parts of the government and their members have previously expressed greater expectations and concerns about this area.

The U.S. Office of the Comptroller of the Currency (OCC) hosted a symposium on RWA in February. The event covered the legal basis, use cases, risk management, and rotation control issues. around RWA tokenization.

The US Federal Reserve published a paper on tokenization in August 2023, asserting that tokenized assets can transfer volatility from the crypto asset market to the reference market.

Individual countries have also taken action. In February, Iowa launched one draft redefining tokenized RWA as a personal asset, demonstrating a permissive stance.

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According to Cryptoslate

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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