Plume CEO: Tokenized Asset Market Lacks Institutional Capital

Yin’s remarks suggest the market’s immaturity hinders institutional interest despite some growth and potential parallels with stablecoin evolution.

Chris Yin criticizes the market size for real-world asset tokenization, stating it remains too small for substantial institutional investment.

“Only now, 10 years later, are they beginning to think about using the stablecoin. The same thing is going to happen in tokenized assets or tokenization.”

Plume Network, supported by a large investment from Apollo Global Management, aims to become pivotal in tokenized finance. However, Yin argues the market capitalization is closer to $10 billion than reported numbers suggest.

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Institutional interest seems limited by the market’s current size. Yin notes that institutions are primarily profit-driven, looking for avenues to generate revenue rather than operational efficiencies.

Projected by some to grow significantly, the market’s current state mirrors early Bitcoin and stablecoin adoption phases. The regulatory environment and financial outcomes could shift as the market expands, pointing toward eventual maturity.

Gene Shemeliak of Stobox believes RWA tokenization must involve institutional entities to achieve significant volume. His assertion underscores the necessity of regulated platforms and legal compliance for growth.

Yin’s perspective reflects a broader skepticism about current institutional involvement, as he argues these entities are more focused on extracting value from existing cryptocurrency markets rather than investing. Deloitte’s forecasted $4 trillion in tokenized real estate by 2035 represents the sector’s potential despite current limitations.

Plume Network’s native token, PLUME, has gained attention within the RWA tokenization ecosystem. Grayscale’s interest may indicate increasing institutional curiosity in sector-specific tokens.