Why Analysts Believe Tokenized Assets Could Become A Trillion-Dollar Market

The tokenization sector has seen remarkable growth over the past year, especially with banks, crypto firms, and fintech companies looking to launch products in this space. According to data compiled by Asset Tokenization, major financial institutions projected that this sector could reach at least a $2 trillion valuation by 2035. Consulting firm McKinsey forecasted that the tokenization market could reach $1.9 trillion by 2030 and $4 trillion by 2035. Source: Asset Tokenization On the higher end, Standard Chartered said the market value of tokenized assets could reach $30.1 trillion by 2034. One could also say these bullish projections are helping to boost institutional interest in the growing sector. A Look at Banks Already Entering the Tokenization Market Banks have been discussing the development of tokenized forms of other types of assets for several years. They claim that this will help make the trade more efficient, faster, and cheaper. Since the latter half of 2025, this concept has begun to take form as more and more institutions are launching this sector. For instance, in December 2025, JPMorgan (NYSE:JPM) launched its first tokenized money fund, allowing investors to hold tokens representing their shareholding in the fund. The fund, called My OnChain Net Yield Fund, or “MONY,” was available to individuals with a minimum investment of $5 million and to institutions with a minimum investment of $25 million. Also, Goldman Sachs (NYSE:GS) created internal blockchain technology to support tokenized ownership of funds. Then, in July 2025, it announced a public partnership with BNY Mellon for launching money market fund tokenization solutions. Other notable mentions include Citigroup (NYSE:C), UBS, and Germany's Deutsche Bank, which have all taken steps in this sector. The Next Big Crypto Play Looks to Be Tokenization Since the start of the new year, the crypto space has seen more firms looking to move their assets on-chain. Just last month, Binance announced that it would resume offering tokenized equities, close to five years after shelving a similar plan due to regulatory hurdles. The exchange has teamed up with tokenization platform Ondo Finance to list 10 tokenized stocks, ETFs, and commodity-linked products traded in the United States on its Binance Alpha platform. In the same month, Kraken also launched the world's first regulated tokenized equities perpetual futures under the xStocks framework. Regulation has played a particularly key role here. Stablecoins are considered one of the main growth factors of tokenization, especially, and the regulation (GENIUS Act) has further boosted the adoption of tokenization. Notably, the crypto market structure bill, called the CLARITY Act, is expected to provide further clarity on this. One of the major challenges that tokenized assets have faced is whether they qualify as securities, commodities, or something else. The CLARITY Act would determine which assets are under the jurisdiction of the SEC and which are under the Commodity Futures Trading Commission (CFTC). For tokenized markets, this will help companies understand which rules to follow before they launch a product. Fintech Firms Also Not Left Behind In a significant partnership announced in March 2026, SoFi partnered with Mastercard to enable SoFiUSD, a fully reserved US dollar stablecoin, as a settlement option. Rather than waiting days for bank rails to settle, SoFi is using tokenized cash to settle card transactions on Mastercard's global network. Additionally, Revolut is using tokenized cash rails to enable cheaper cross-border remittances. This enables users to hold interest-generating tokenized assets such as tokenized Money Market Funds directly in their digital wallets. Tokenized Asset Market Hits $27B as Institutions Expand Participation The global market for tokenized real-world assets, according to RWA.xyz, is currently valued at $27 billion in distributed asset value, up 8% over the last 30 days as more institutional capital enters on-chain treasury and commodity products. The top position still belongs to U.S. Treasury debt, at $11.2 billion, followed by commodities at $5.7 billion. Circle (NASDAQ:CRCL) now leads in the provision of tokenized Treasury exposure after the supply of the USYC token rose to about $2.2 billion last week. It surpassed the USD Institutional Digital Liquidity Fund (BUIDL) from BlackRock, which currently has $2 billion in assets. This level of competition supports institutions’ bullish forecasts that this market could reach incredible heights in the coming years. Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.