šTraditional finance has entered a quiet yet profound revolution.š Tokenization is no longer a āfuture promiseā; as of 2026, it has become a core mechanism reshaping the very infrastructure of TradFi. The conversion of real-world assets (RWAs)āfrom real estate, bonds, and U.S. Treasuries to private credit, commodities, equities, and even artāinto blockchain-based tokens is redefining how capital is created, moved, and valued. And hereās the most critical shift:š This transformation is no longer being driven by crypto-native players, but by the heavyweights of global finance. BlackRock, Franklin Templeton, JPMorgan, Goldman Sachs, and their peers have moved well beyond pilot programs. 2026 will be remembered as the year tokenization transitioned from proof of concept to production-scale financial infrastructure. What Tokenization Actually Delivers By digitizing ownership and moving it onto blockchain rails, tokenization enables: Fractional ownership Assets once accessible only to large institutions can now be owned in small fractions (e.g., holding 0.01% of a commercial property). Programmable finance Smart contracts automate compliance, coupon payments, dividends, and distributions. Instant settlement (T+0) Reconciliation cycles that once took days now complete in seconds. DeFi integration Tokenized assets can be used as collateral, plugged into liquidity pools, and deployed for yield. TradFiās perspective is clear: Blockchain is not a speculative toolāit is modern financial plumbing. The Real Market Size in Early 2026 The numbers are no longer storytellingātheyāre evidence: Excluding stablecoins, on-chain tokenized RWAs total approximately $19ā36 billion. Including stablecoins, the broader tokenized asset market exceeds $300ā330 billion. Tokenized U.S. Treasuries dominate the sector at $8ā10B+, with BlackRockās BUIDL alone reaching $2ā3B at peak levels. Tokenized equities have exploded: ~$963M as of January 2026, representing 2,900%+ YoY growth. A market that stood at just $5ā6B in 2022 stabilizing above $20B within a few years signals one thing clearly: this growth is institutionalānot speculative. Liquidity, Volume, and On-Chain Activity In 2026, the key question is no longer how many products exist, but: Which ones actually trade? Monthly on-chain volumes across major networksāled by Ethereumāare now in the double-digit billions. Deepest liquidity is concentrated in: Tokenized Treasuries Cash-equivalent yield products Institutional participation enables 24/7 trading, collateral mobility, and improved price stability. Still, challenges remain: Cross-chain fragmentation 1ā3% price discrepancies for identical assets 2ā5% friction in cross-chain transfers Liquidity is maturingābut reaching TradFi scale requires standardization. How Much of Global Finance Is Tokenized? Surprisingly littleāfor now: Tokenized assets represent roughly 0.01% of global equity and bond markets. In the $27T U.S. Treasury market, tokenization accounts for only 0.015ā0.03%. Real estate and private credit tokenization remain close to zero. This isnāt a weakness. Itās a declaration of multi-trillion-dollar upside. 2030 projections: 5ā10% of global assets could be tokenized Some scenarios point to a $10ā30 trillion on-chain asset economy Pricing and Market Dynamics Tokenization affects pricing through three primary channels: Improved liquidity reduces illiquidity premiums Yield-bearing tokenized products act as safe havens in volatile markets DeFi composability creates persistent demand for high-quality RWAs Macro shocks will always matterābut data from 2025ā2026 shows RWAs to be far more resilient than purely narrative-driven crypto assets.
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#TraditionalFinanceAcceleratesTokenization
šTraditional finance has entered a quiet yet profound revolution.š
Tokenization is no longer a āfuture promiseā; as of 2026, it has become a core mechanism reshaping the very infrastructure of TradFi.
The conversion of real-world assets (RWAs)āfrom real estate, bonds, and U.S. Treasuries to private credit, commodities, equities, and even artāinto blockchain-based tokens is redefining how capital is created, moved, and valued.
And hereās the most critical shift:š
This transformation is no longer being driven by crypto-native players, but by the heavyweights of global finance.
BlackRock, Franklin Templeton, JPMorgan, Goldman Sachs, and their peers have moved well beyond pilot programs.
2026 will be remembered as the year tokenization transitioned from proof of concept to production-scale financial infrastructure.
What Tokenization Actually Delivers
By digitizing ownership and moving it onto blockchain rails, tokenization enables:
Fractional ownership
Assets once accessible only to large institutions can now be owned in small fractions
(e.g., holding 0.01% of a commercial property).
Programmable finance
Smart contracts automate compliance, coupon payments, dividends, and distributions.
Instant settlement (T+0)
Reconciliation cycles that once took days now complete in seconds.
DeFi integration
Tokenized assets can be used as collateral, plugged into liquidity pools, and deployed for yield.
TradFiās perspective is clear:
Blockchain is not a speculative toolāit is modern financial plumbing.
The Real Market Size in Early 2026
The numbers are no longer storytellingātheyāre evidence:
Excluding stablecoins, on-chain tokenized RWAs total approximately $19ā36 billion.
Including stablecoins, the broader tokenized asset market exceeds $300ā330 billion.
Tokenized U.S. Treasuries dominate the sector at $8ā10B+,
with BlackRockās BUIDL alone reaching $2ā3B at peak levels.
Tokenized equities have exploded:
~$963M as of January 2026, representing 2,900%+ YoY growth.
A market that stood at just $5ā6B in 2022 stabilizing above $20B within a few years signals one thing clearly:
this growth is institutionalānot speculative.
Liquidity, Volume, and On-Chain Activity
In 2026, the key question is no longer how many products exist, but:
Which ones actually trade?
Monthly on-chain volumes across major networksāled by Ethereumāare now in the double-digit billions.
Deepest liquidity is concentrated in:
Tokenized Treasuries
Cash-equivalent yield products
Institutional participation enables 24/7 trading, collateral mobility, and improved price stability.
Still, challenges remain:
Cross-chain fragmentation
1ā3% price discrepancies for identical assets
2ā5% friction in cross-chain transfers
Liquidity is maturingābut reaching TradFi scale requires standardization.
How Much of Global Finance Is Tokenized?
Surprisingly littleāfor now:
Tokenized assets represent roughly 0.01% of global equity and bond markets.
In the $27T U.S. Treasury market, tokenization accounts for only 0.015ā0.03%.
Real estate and private credit tokenization remain close to zero.
This isnāt a weakness.
Itās a declaration of multi-trillion-dollar upside.
2030 projections:
5ā10% of global assets could be tokenized
Some scenarios point to a $10ā30 trillion on-chain asset economy
Pricing and Market Dynamics
Tokenization affects pricing through three primary channels:
Improved liquidity reduces illiquidity premiums
Yield-bearing tokenized products act as safe havens in volatile markets
DeFi composability creates persistent demand for high-quality RWAs
Macro shocks will always matterābut data from 2025ā2026 shows RWAs to be far more resilient than purely narrative-driven crypto assets.