Tokenization Revolution: Solana Emerges as a Key Player While Blockchain Reshapes Private Markets

The tokenization of real-world assets (RWA), U.S. equities, and private markets are accelerating at an unprecedented pace, fundamentally reshaping the global financial landscape. Syncracy Capital Co-Founder Ryan Watkins believes that Solana is poised to lead the "Tokenization of Everything," while Hyperliquid could dominate the "Perpification of Everything."

Tokenization is Transforming Global Financial Markets

Tokenization has evolved from a theoretical idea into a driving force reshaping financial markets and adjacent industries. By leveraging blockchain technology, real-world assets such as real estate, bonds, equities, and private market assets are being converted into digital tokens.

BlackRock reported that the secondary market for tokenized private assets has reached unprecedented levels.

In 2024, closed transaction volumes in the secondary market hit a record $162 billion, surpassing the previous high of $132 billion in 2021.This 45% year-over-year (YoY) growth was driven by rising valuations, new market entrants, and broader adoption of General Partner (GP)-led and Limited Partner (LP)-led deals.

LP-led deals alone accounted for $87 billion, representing 54% of the market, with significant contributions from first-time LP sellers and strategic portfolio management.

Despite this remarkable growth, tokenized private assets still represent only about 1% of the total private market value, highlighting just how much room there is for growth. Market estimates suggest the total addressable market for tokenized private assets could reach $12 trillion, compared to the current tokenized value of approximately $14 billion.

This evolution is breaking down barriers to entry, democratizing investment opportunities, and creating a globally interconnected financial ecosystem.

Against this backdrop, Watkins emphasizes that as tokenization technology matures and gains wider acceptance, the future of financial markets will become more open, transparent, and globally interconnected.

Solana: A Front-Runner in Tokenization Technology

Ryan Watkins, Co-Founder of Syncracy Capital, has highlighted the transformative potential of Solana and Hyperliquid in the evolving crypto economy. In May, he described their rivalry as “the cryptoeconomy’s defining battle” amid the migration of U.S. equities on-chain. Watkins predicted that the platform emerging victorious could become a $100–$500 billion player capable of reshaping global capital markets.

On June 25, Watkins revisited this prediction with a new post on X, stating that Solana now appears poised to lead the “tokenization of everything,” while Hyperliquid is positioned to dominate the perpetual futures market.

Solana’s recent performance further reinforces this narrative. Its native token, SOL, recently achieved a record-breaking milestone with CME futures trading volume reaching 1.75 million contracts, signaling increasing institutional interest. This milestone aligns with Watkins’ assertion that Solana is uniquely equipped to drive the next wave of tokenization, leveraging its high-performance architecture and low transaction costs.

Key Drivers of Tokenization Growth

The rapid progress of tokenization is underpinned by a combination of technological advancements and shifting market dynamics. Carlos Domingo, CEO of Securitize, believes that the next phase of tokenization will be driven by improvements in infrastructure and evolving market conditions.

Technological Drivers:

1. Maturing Blockchain Infrastructure: Layer-1 and Layer-2 solutions are scaling rapidly, reducing costs and improving user experience.

2. Evolving Smart Contracts: Contracts are becoming more secure and automated, with AI assisting in their design and auditing.

3. On-Chain Identity Integration: Wallet-linked KYC and decentralized identity protocols are simplifying onboarding processes.

4. Institutional Custody Solutions: Multi-party computation (MPC) wallets and custody protocols address concerns about asset security.

5. Regulated Market Integration: More tokenized assets are being traded on SEC-regulated platforms, enhancing liquidity and transparency.

Market Drivers:

1. Regulatory Clarity: Frameworks in the U.S., EU, and APAC are advancing, boosting institutional confidence in tokenized securities, stablecoins, and DeFi.

2. Tokenized Treasuries: These are emerging as premium collateral and yield instruments.

3. Stablecoins as a Global Settlement Layer: With a circulation exceeding $150 billion, stablecoins are evolving into programmable digital cash.

4. Comprehensive Asset Coverage: Tokenization is extending across the full spectrum of capital markets, from public equities to private equity, bonds, real estate, and commodities.

5. Institutional and Emerging Market Adoption: Wall Street is piloting tokenized infrastructure, while developing countries are leapfrogging traditional systems by directly adopting blockchain technology.

The Future of Tokenization

The lines between public and private markets, traditional and digital assets, are expected to blur. As blockchain technology continues to evolve, the lines between public and private markets, traditional and digital assets, are expected to blur. Platforms like Solana will play a pivotal role in this transition.

Watkins concludes, "The future of tokenization will be a 24/7, globally accessible financial system—built on trustless blockchain technology and powered by programmable assets."