Mike Novogratz, CEO of Galaxy Digital, highlights the growing trend of real-world asset (RWA) tokenization, following BlackRock's BUIDL fund surpassing $1 billion in assets under management. Novogratz believes tokenization will transform the financial industry by enhancing transparency, efficiency, and security. He predicts blockchain-based financial products will become essential for institutional investors. BlackRock's BUIDL, an ERC-20 token on Ethereum, aims to improve liquidity and reduce risks by tokenizing U.S. Treasury assets. The fund's growth was bolstered by Frax Finance stablecoin using BUIDL as a reserve. Other firms like Ripple Labs are also embracing tokenization, with initiatives like a tokenized money market fund on XRP Ledger and the RLUSD stablecoin. The trend indicates a broader industry shift towards blockchain-based investment vehicles.

HIGHLIGHTS BlackRock's BUIDL tokenized fund just surpassed $1 billion in AUM Mike Novogratz believes the future of RWA adoption is bright More corporate firms including Ripple Labs are pushing new frontiers in RWA Mike Novogratz, the founder and CEO of Galaxy Digital, reiterated his belief in the rapid expansion of real-world asset (RWA) tokenization. His statement came after BlackRock’s tokenized fund, BUIDL, surpassed $1 billion in Assets Under Management (AUM). Novogratz, a long-time advocate for blockchain technology in traditional finance, believes tokenization will reshape the financial industry.
Mike Novogratz Predicts The Future of RWA
Mike Novogratz has been vocal about blockchain's potential to transform traditional financial markets. He maintains that anything capable of being tokenized will eventually be moved on-chain. His recent comment on X emphasizes the growing role of blockchain in financial infrastructure, particularly in tokenization moves.

The billionaire investor argues that blockchain ensures transparency, efficiency, and security, making it an attractive solution for institutions. Mike Novogratz believes the push toward tokenization is no longer a theoretical concept but an active movement gaining traction across financial sectors.&nbsp;

According to Novogratz, blockchain-based financial products will become essential tools for institutional investors soon. He predicts this as companies search for novel ways to improve liquidity and settlement processes.

His prediction also agrees with a larger trend of financial institutions turning to tokenized assets. Major firms have already begun integrating blockchain into their asset management strategies, and Novogratz expects this shift to accelerate in the coming years. He points to the rapid development of blockchain infrastructure as a key factor in the mainstream adoption of RWAs.
The BlackRock BUIDL Milestone
Meanwhile, BlackRock’s BUIDL fund has reached a major milestone, crossing the $1 billion mark in assets under management. The investment giant launched the product in March 2024 in partnership with Securitize. BUIDL is an ERC-20 token on the Ethereum blockchain. The fund exposes institutional investors to U.S. Treasury bills and repurchase agreements while leveraging blockchain for enhanced security and liquidity.

A significant factor in BUIDL’s growth was the launch of Frax Finance stablecoin with BUIDL as its backing reserve. This move reinforced the increasing demand for tokenized financial products and demonstrated how blockchain technology is being integrated into traditional asset management.

By tokenizing U.S. Treasury assets, BlackRock aims to improve liquidity, streamline transactions, and reduce counterparty risks. The success of BUIDL signals a broader industry movement toward blockchain-based investment vehicles.

Meanwhile, In January, BlackRock's CEO Larry Fink urged the US Securities and Exchange Commission (SEC) to approve the tokenization of bonds and stocks. This, he believes can fuel the push for RWA.
Firms Embracing Tokenization
Other major financial firms follow a similar path to complement the Mike Novogratz spotlight. For example, Ripple Labs, known for its work in blockchain payments, has been expanding its focus on tokenization.&nbsp;

In November 2024, Ripple announced their first tokenized money market fund on XRP Ledger. The firm floated this product in partnership with crypto exchange Archax and UK asset manager abrdn. Since then, the company has expressed confidence in RWAs as a key driver for the future of finance.&nbsp;

To advance its tokenization push, it also launched RLUSD stablecoin in December 2024. Earlier, CoinGape reported Ripple minted 6.5 million RLUSD on Ethereum, proof of the product’s expansion&nbsp;

As Novogratz predicted, the adoption of tokenized assets is gaining momentum, with BlackRock and Ripple at the forefront.

Mike Novogratz on RWA Tokenization and BlackRock's BUIDL Milestone