Tokenization gets thrown around loosely in fintech conversations, usually next to buzzwords like blockchain and Web3. Strip away the noise and something specific is happening: existing financial assets, loans, real estate shares, government bonds, are being represented digitally on a blockchain, making them easier to move, faster to settle, and accessible to more investors. It is not a new kind of value. It is a new way of moving the value that already exists.
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Where it is actually gaining ground
Private credit, a roughly $1.5 trillion market, has been an early mover, though only about $12 billion of it, under 1%, has been tokenized so far. Platforms like Maple Finance and Centrifuge run on-chain lending backed by digital collateral, mostly on Ethereum and other EVM-compatible chains.
U.S. Treasuries, a $25 trillion market with roughly $600 billion trading daily, have seen about $4 billion tokenized, still a sliver, but notable given the size and conservatism of that market. Ondo Finance offers tokenized Treasury products on EVM chains, while Franklin Templeton has built on Hyperledger instead. The appeal during volatile crypto markets is straightforward: moving into a tokenized Treasury without leaving the blockchain ecosystem, keeping yield and stability in one place.
Real estate, the largest asset class at roughly $326 trillion, has barely been touched, with about $3 billion tokenized so far. Title, escrow, and regulatory processes slow this down more than any technical limitation. Platforms like RealT and HoneyBricks are working mostly through SPV structures, where a token represents a share in a holding company that owns the property, rather than the deed itself.
The scale still ahead
Some of the largest markets remain almost entirely untouched. Commodities, valued around $37 trillion, have seen about $1 billion tokenized, concentrated mostly in gold. Public equities, a $120 trillion market, show roughly $15 billion tokenized in visible form, though infrastructure work by systems like R3 Corda and the DTCC’s Project Ion suggests more is happening behind the scenes, aimed at real-time settlement that could reduce the delays behind incidents like the GameStop trading halts. Derivatives dwarf everything else, sitting between one and two quadrillion dollars in notional value, with only about $5 billion tokenized to date.
Which chains are positioned to benefit
Different networks are specializing rather than competing head to head. The XRP Ledger, particularly through its EVM sidechain and ties to Corda, is positioned around settlement and institutional compatibility. Stellar has done significant work in Treasury tokenization alongside Franklin Templeton. Hedera is active in carbon credits and institutional tooling, and Polygon has emerged as a generalist across several asset types.
None of this is theoretical anymore. It is happening at different speeds across different markets, and the platforms likely to matter most are not the loudest ones, they are the ones solving real settlement and custody problems for markets that have historically been slow to change.
Educational only, not tax, legal, or investment advice. Check primary sources and speak with a qualified professional before making financial decisions.
For the bigger picture, see the guide to asset tokenization.
Part of our guide: Asset Tokenization.
