Tokenized real-world assets have climbed to a market capitalization of $51 billion, marking a 40% increase since the start of the year, according to Bernstein. Over the same period, the broader cryptocurrency market has dropped roughly 20%, highlighting a growing divergence in performance.
This gap points to a shift in capital toward blockchain-based representations of traditional financial instruments, particularly those backed by tangible, off-chain assets. While major cryptocurrencies like Bitcoin have faced price pressure and volatility, tokenized assets tied to credit, government debt, and commodities have continued to expand.
Private credit and treasurys dominate asset mix
Private credit accounts for nearly 47% of the tokenized asset market, followed by U.S. treasurys at around 30% and commodities at 9%. The focus on these categories reflects demand for predictable yield and familiar financial structures rather than speculative exposure.
Ethereum and Provenance together underpin more than 70% of tokenized activity. Provenance holds a 39% share, driven by its specialization in financial services, while Ethereum accounts for 33%, supported by its liquidity and widespread adoption.
User growth and equity tokenization accelerate
The number of holders of tokenized assets has surpassed 917,000, rising about 60% since the beginning of the year. Equity tokenization has expanded even faster, growing 130% from $700 million to $1.6 billion.
Monthly transfer volumes for tokenized equities reached $5.3 billion in June on a run-rate basis, up from $3.6 billion in May and just $500 million in September 2025. Transaction activity has more than doubled since April, signaling increasing adoption.
Two models define equity tokenization
Two distinct structures have emerged in tokenized equities. The trading infrastructure model allows broker-dealer platforms to purchase shares and issue blockchain-based tokens representing them. These tokens can trade continuously, though ownership rights and dividends remain with the custodian.
The settlement infrastructure model takes a more fundamental approach by placing the official record of ownership on blockchain networks. In this setup, tokenholders receive direct ownership and legal protections under existing securities frameworks.
Companies including Figure, Bullish, and Securitize are developing systems around this second model, using regulated broker-dealer, custody, and transfer agent licenses. Figure has already launched tokenized shares through its OPEN platform, while Bullish is integrating traditional and tokenized securities through its acquisition of Equiniti. Securitize has partnered with the New York Stock Exchange to advance on-chain issuance infrastructure.
Platforms compete as adoption grows
Competition among platforms is intensifying as adoption increases.
- Figure leads with $18.9 billion in tokenized assets, largely from private credit
- Securitize follows with $4.3 billion
- Ondo holds $3.8 billion and continues expanding its offerings
- Circle manages $3 billion
- Tether accounts for $2.5 billion, mainly in commodities
Updated estimates suggest the total value of tokenized instruments has already exceeded $65 billion, reflecting accelerating momentum across the sector.
Regulation emerges as key catalyst
Regulatory developments are shaping the pace of growth. The U.S. Securities and Exchange Commission has proposed removing Rules 611 and 610(e), a move that could allow tokenized stocks to trade directly on decentralized networks. It has also approved pilot programs from the NYSE and Nasdaq for tokenized securities.
A proposed âinnovation exemptionâ could further enable the trading of tokenized U.S. equities within domestic markets. Analysts view this as a critical catalyst that could unlock broader adoption.
Shift toward blockchain-based financial infrastructure
The divergence between tokenized assets and the wider cryptocurrency market underscores a broader transition. Rather than focusing on speculative tokens, traders are increasingly allocating capital to blockchain-based systems that replicate and improve existing financial products.
This trend is less about reinventing finance and more about upgrading it, using blockchain technology to enhance efficiency, transparency, and settlement speed in established markets.
Curious how tokenization reshapes equity markets? Explore the mechanics and models in this in-depth guide on tokenized equities.
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