Ritesh Kakkad, co-founder of XDC Network, said that if adoption continues to expand under new US regulations, real-world assets (RWAS) tokenization could reach $7 trillion in five years. He pointed out the size of traditional markets as the basis for his predictions. Global assets across currency, real estate, metals, bonds and equities are worth around $700 trillion. If even 1% of this were to move to blockchain, Kakkad said it would equal $7 trillion tokenized value in the next three to five years.
XDC co-founders say Stablecoin Laws in the US will drive confidence
Kakkad highlighted Stablecoins as a major trend in the US market. He cited the recent passage of the Genius Act and the anti-surveillance of the CBDC Act. Together, these form a regulatory framework for stablecoins. The law requires the issuer to maintain full reserves in cash or in the US Treasury. This gives institutional investors more confidence.
Kakkad pointed to a list of circles on the New York Stock Exchange, which had its valuation jumped from $30 to $300 per share, as proof of demand. He argued that by implementing the regulations, stubcoin could serve as the basis for large-scale RWA settlements and cross-border payments.
Another Wall Street Trend Cuckad discussed was the emergence of the Digital Asset Finance Company (DATCOS). He compared the model to the early structure of Berkshire Hathaway, where the company had long-term investments in traditional stocks like Coca-Cola.
In contrast, Datcos holds cryptocurrencies and tokenized assets such as Bitcoin, Ethereum, and XDC. They generate yields by deploying these assets into distributed finance (DEFI). Kakkad said the model has gained traction as it allows companies to list on regulated exchanges like Nasdaq, while maintaining transparency in financial applications.
Kakkad argued that XDC networks are positioned as a strong fundamental layer of tokenization and resolution. He cited three benefits: It is low cost suitable for XDC microtransactions, 2 seconds transaction time for fast payments, and energy efficiency with 99% lower consumption compared to the proof of work blockchain.
Kakkad added that XDC’s compliance capabilities, such as KYC-enabled validator nodes and thrashing mechanisms to remove bad actors, are attractive to agencies that pay attention to regulatory risks. The Wall Street company appreciates these features more than the open structures of Bitcoin and Ethereum, he said.
At press, XDC prices drop by $0.07, 1% from a day prior and 5.3% per week.
The tokenization market expands beyond crypto
Kakkad has linked the $7 trillion forecast to a larger adoption curve for tokenization. Global banks process between $4 trillion and $20 trillion in daily transactions. This is much more than the annual total of the crypto sector. He said the market for tokenized assets would expand rapidly if blockchain captures even a small share of this volume.
He also noted the importance of Stablecoin integration, including Circle’s USDC support for XDC, which allows for cross-border settlements in trade finance and payments. With new US laws in place, he sees a historic moment for the adoption of blockchain.
Kakkad’s predictions reflect a similar view by Cardano founder Charles Hoskinson. Charles Hoskinson recently said that once the US securities laws are clarified, assets could move in chains. Both view RWA as the biggest growth driver for blockchain in the next five years. Kakkad builds opportunities around Wall Street trends such as Stablecoins and Datcos.