In a bold and forward-looking speech at the TOKEN2049 conference in Singapore, Sergey Nazarov, the co-founder of Chainlink, has laid out a fascinating vision for the future of decentralized finance (DeFi). According to Nazarov, traditional finance (TradFi) is on the verge of a significant transformation, with an influx of capital that could reshape the DeFi landscape in ways we’ve never seen before.

### **The Trillions Are Coming**

Nazarov predicts that TradFi will soon become the largest contributor to the decentralized finance sector. In his words, "It's actually about net new value coming in from the traditional market, and coming in not in the hundreds of billions but in the trillions." This statement alone paints a picture of a financial revolution, where institutional capital flows into the DeFi space, far surpassing the current volume of cryptocurrency transactions.

This infusion of capital won't just trickle in. Nazarov suggests it will flood the sector, creating unprecedented growth and opportunities for both crypto veterans and newcomers alike. 

### **Real-World Assets: The Game-Changer**

Nazarov emphasizes that real-world assets (RWAs) will be the driving force behind this transformation. RWAs refer to physical or traditional financial assets, such as real estate, stocks, or commodities, that can be tokenized and traded on blockchain networks. These assets, according to Nazarov, hold the key to unlocking the next phase of growth for the blockchain industry.

"The real-world asset trend and the real-world asset category will, relatively soon in the next few years, overcome the total value of cryptocurrencies," he said.

This is a striking prediction, suggesting that the future of blockchain technology will shift away from being primarily about cryptocurrencies and more about the broader applications of blockchain in managing and trading real-world assets.

### **Beyond Cryptocurrencies: A New Era for Blockchain**

As real-world assets take center stage, Nazarov envisions a time when blockchain technology will no longer be synonymous with just cryptocurrency. Instead, it will become the backbone of global financial systems, enabling more efficient, transparent, and accessible markets.

"And then our industry by definition, by the numbers, will not be about cryptocurrencies," Nazarov remarked. "It will be about blockchain technology enabling things like real-world assets."

This shift could open the door for more traditional financial players, who have been cautiously observing the DeFi space, to finally step in and participate in a more tangible and familiar way.

### **A Paradigm Shift on the Horizon**

Nazarov's vision suggests that the merging of DeFi and TradFi will bring about a paradigm shift in how we think about finance. The blockchain space will no longer be limited to crypto enthusiasts or early adopters—it will be a domain where institutions, governments, and everyday investors interact with tokenized real-world assets.

This massive influx of capital and integration of RWAs could redefine the entire financial system, making blockchain a critical infrastructure for a wide range of industries.

As we look to the future, it’s clear that this vision of blockchain technology and real-world assets could create new opportunities and challenges. The only question is: Are we ready for this financial revolution?