Tokenization—the process of converting physical, digital, financial, and intangible assets into digital tokens represented on a blockchain—is part of the effort, and has already moved from concept to reality among banks and businesses.
Polaris Research expects the tokenization market to reach $10 trillion by 2030. Globally, markets are on track. JPMorgan and Goldman Sachs recently launched tokenized U.S. treasuries; BlackRock launched its historic Bitcoin ETF and tokenized money market fund (BUIDL)-all which add considerable weight to the overall market projection.
These trends evince a promising present and future for digital assets, cryptocurrencies, and other form factors of the Internet of Value—a global, ‘always onʼ, programmable, multi-asset financial network where value moves seamlessly onchain. With tokenized US treasuries and green bonds, to carbon credits, stocks, stablecoins, and real-world assets—the tokenization market potential is virtually endless.
Survey Insight:
Tokenization benefits all asset classes; the most promising ones vary by region: 59% believe stocks and equities would benefit the most from tokenization
- NA participants highlighted transformation potential for US treasuries (32%) more than others. This underscores a trend of traditional custodians building tokenization infrastructure.
- In MEA, 41% of leaders flagged real estate as an asset type that will benefit from forthcoming tokenization. Tokenizing real estate has started to introduce liquidity and greater market participation, allowing properties to be divided into fractional interests.
- In APAC, 36% of institutions highlighted commodities tokenization—a response rate beyond the global average and on par with the most bullish FIs. APAC operates at the forefront here, and the region is home to promising examples of asset tokenization. One recent survey of Asia investment managers finds that 86% expect to offer tokenized funds in less than three years, noting that regulatory innovation buoys regional progress.
Belief in benefits may not immediately materialize into project progress: 56% of global financial institutions expect to have a tokenization solution in production or be in the process of implementing one within the next 3 years
- LATAM and MEA anticipate rapid progress. Over 80% percent of LATAM leaders and 76% of MEA leaders said their businesses would be more mature, or in a pilot or POC.
- Although NA participants werenʼt exceptionally optimistic, NA FIs surfaced as an outlier: 64% said their companies would be more mature in their use and just 2% said their companies wonʼt seriously consider tokenization.
Regulation is the concern that rules them all: 10% of finance leaders in North America cited zero concerns with using tokenized assets in their business
For participants who selected some factor discouraging use (of note, 6% of survey respondents said nothing would discourage their company from using tokenized assets), nearly every one cited lack of clear regulation. In LATAM (55%) and Europe (46%), an above average number of participants stressed this. Global commercial businesses and fintechs also showed concern.
Close
Our survey shows how institutions have progressed from theoretical discussions to practical implementation, with over 80% of FIs and enterprises executing or planning tokenization projects.
As projects progress, simplified cross-border payments, asset fractionalization, and 24/7 market access will move from innovative exceptions into table stakes benefits over the next three years. And as regulatory frameworks crystallize and infrastructure advances, institutions will distinguish themselves not by whether they adopt tokenization, but by how aggressively (and effectively) they do.
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