Chainlink co-founder Sergey Nazarov stated in his keynote speech at the TOKEN49 event in Singapore on September 18 that the value of tokenized real-world assets (RWA) will surpass the value of cryptocurrencies in Web3 in the next few years. This flow of value will fundamentally change the nature of the blockchain industry in traditional finance (TradFi).

Nazarov said that TradFi will be DeFi’s largest customer and that Chainlink’s Cross-Chain Interoperability Protocol (CCIP) protocol could play a key role in an Internet of Contracts that connects central bank digital currencies, asset chains, consortium chains, and public blockchains.

The Chainlink oracle network powers the majority of DeFi, enabling $15.49 trillion in transaction value as of 2022. In order for TradFi to use blockchain technology, it needs access to a variety of data types, including live data. CCIP allows users to make payments using stablecoins without integrating multiple chains.

A single set of standards is desirable for TradFi to fully utilize blockchain technology, but TradFi has “decades of systems.” Nazarov noted the large user base of the SWIFT network that operates on a single standard. He also noted that there is a legal barrier between TradFi and Web3, but that this is gradually decreasing, especially in Asia and the Middle East.

How long do you think it will take for TradFi to integrate into the blockchain? Share your thoughts in the comments!