Sergey Nazarov, the co-creator of Chainlink (LINK), believes that this year could mark a significant merger between blockchain technology and the traditional global financial system. Speaking at the Consensus 2024 conference, Nazarov highlighted that the market for on-chain assets is worth over $100 trillion.

Nazarov presented a chart demonstrating how the $2.7 trillion debt market and the $106 trillion stock market can be transitioned onto the blockchain. The chart also illustrated the potential for tokenizing other assets, such as global real estate and derivatives.

According to Nazarov, all financial transactions will eventually take place on-chain, and he predicts that in 2024, the global financial system will begin moving its settlement systems onto public blockchains.

He stated, “We’re at another tipping point where the value of real-world asset digital asset tokenization trend, even on public chains, has now surpassed decentralized finance (DeFi). And this doesn’t even account for the value in private chains, banks’ chains, and other private systems, so the value is even greater than that.”

Nazarov emphasized that the future will see all the world’s value, including credits, derivatives, and commodities, represented and composed on-chain into more advanced financial products. This will be done in an efficient and rapid manner, reducing transaction times from months to minutes or seconds.

He further explained, “As more assets get on-chain, they’ll become composable and create their own benefits from being composed into more advanced baskets of things.”

Nazarov believes that the industry has reached a tipping point, where the numbers have surpassed previous records, and major institutions are now considering how to put their value on-chain. He predicts that this year will be the turning point for the industry, as public chains and the global financial system merge into a unified industry, forming a single internet of contracts.

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