Carlos Domingo: Why Tokenization Goes From Billions To Trillions (Full Thesis)

Carlos Domingo discusses the SEC's proposal for modernizing transfer agents, which is currently open for public comments. He anticipates that the SEC will soon establish an innovation exemption for token and securities, which could significantly impact the market.

Domingo outlines three distinct models for tokenizing shares: tokenizing a share itself, tokenizing an entitlement to a share, and creating derivatives based on these assets. He emphasizes that confusion often arises from mixing these different types of tokenized assets, which can lead to misunderstandings in the market.

He critiques Robinhood's debt instruments, arguing that they primarily serve a niche group of retail investors he labels as "crypto-degens." Domingo believes this focus does not align with the broader retail market's preferences, which lean towards safe, sound, and regulated investment products. This disconnect highlights a potential gap in Robinhood's offerings compared to general market desires.

Domingo notes that only 1% of the equity market is currently on-chain, indicating substantial potential for growth in tokenization. He predicts that a tokenization super cycle could result in trillions of dollars of assets being tokenized, but this growth hinges on attracting traditional investors who are currently hesitant.

He also points out that while the user experience of blockchain technology is improving, it still requires further refinement to become more accessible. Additionally, Domingo highlights the lengthy and complex process of going public, which involves multiple stakeholders, including bankers, lawyers, and auditors. His company has successfully raised over $250 million after going public and is actively seeking acquisitions to expand its reach.