Ethereum Dominates $250B Tokenized Asset Market, 55% Share

Tokenization of real-world assets (RWAs) has evolved from a buzzword to a multi-billion-dollar reality, with Ethereum leading the way. Ethereum commands approximately 55% of the market for tokenized assets, which now exceed $250 billion. This includes a wide range of assets such as stablecoins, U.S. Treasuries, real estate, private credit, commodities, and equities. Ethereum's established infrastructure, widespread developer ecosystem, and proven security make it the preferred blockchain for institutions looking to bridge traditional finance with digital assets.

Tokenization involves converting ownership rights in rwas into digital tokens on a blockchain, which introduces significant efficiencies in settlement speed, liquidity, and accessibility. Tokenized assets can be traded 24/7, settled instantly, and fractionalized to reach a broader range of investors. For institutions, this reduces costs associated with custody, middlemen, and manual processes, while offering transparency and programmability. Ethereum's dominance in this space is due to its robust infrastructure and security, making it the go-to platform for major players entering the tokenization market.

One notable example of institutional adoption is BlackRock’s BUIDL, a tokenized U.S. Treasury fund built on Ethereum. Launched in early 2024, BUIDL allows investors to access U.S. Treasuries via blockchain, offering real-time settlement and transparency into holdings. The fund has rapidly scaled to over $2.5 billion in assets under management, securing a 41% market share in the tokenized U.S. Treasury space. Ethereum remains the dominant chain for tokenized Treasuries, accounting for 74% of the $6.2 billion tokenized U.S. Treasuries market. BUIDL is not just a product but a signal that traditional finance sees Ethereum as the backbone of the next financial era.

Stablecoins, which are U.S. dollar-pegged assets like USDC and USDT, represent the vast majority (95%) of all tokenized assets. Stablecoins alone account for more than $128 billion of Ethereum’s tokenized economy and serve as the primary medium of exchange across decentralized finance (DeFi), cross-border settlements, and remittance platforms. In many developing economies, stablecoins provide access to the U.S. dollar without needing a bank, shielding savings from inflation and enabling seamless international trade.

Tokenized stocks on Ethereum represent a growing but still nascent segment of the tokenized asset space. These digital assets mirror the price of real-world equities and ETFs, offering 24/7 trading, fractional ownership, global accessibility, and instant settlement. Key benefits include increased liquidity, lower transaction costs, and democratized access to markets traditionally limited by geography or account type. Popular tokenized stocks include Nvidia, Coinbase, and MicroStrategy, as well as ETFs like SPY. As regulatory clarity improves, tokenized equities on Ethereum could reshape how investors access and trade stocks, especially in underserved or emerging markets.

Additionally, real estate, private credit, commodities, and even art are finding their way onto Ethereum in tokenized formats, proving the chain’s adaptability for diverse asset classes. The tokenization of these assets introduces newfound utility for financial advisors and wealth managers, enabling the collateralization and margining of asset-backed tokens. Blockchain-based data management systems, like Inveniam, facilitate real-time, asset-level reporting to support private asset-backed stablecoin loans, with the same integrity and traceability that exists elsewhere in the crypto space. This allows legacy private asset classes, like real estate and credit, to function similarly to how crypto loans are currently collateralized on platforms like Aave.

Ask Aime: How does Ethereum's dominance in tokenization impact traditional finance?

Tokenization also helps advisors achieve their portfolio management goals by providing greater control over client portfolio allocations. Many investment funds across private equity, hedge funds, private credit, and commercial real estate have high minimum investment requirements and illiquid secondary trading activity. Tokenized funds can be fractionalized far more efficiently than existing offerings, allowing advisors to buy in at much lower minimums, such as $10,000 increments, versus millions of dollars at a time. This improves an advisor’s ability to meet client demands and achieve return targets without being inhibited by outdated practices.

In conclusion, Ethereum’s dominance in tokenized assets is not just about being first—it’s about being built for permanence. As the infrastructure underpinning real-world asset tokenization matures, Ethereum’s role as the financial layer of the internet becomes more pronounced. While newer chains like Solana will carve out niches in the space, Ethereum continues to be the platform where regulation meets innovation, and where finance finds its next form.