Ethereum Reaches $6 Billion in Tokenized Assets as Institutions Embrace On-Chain Finance

Ethereum has reached a significant milestone with over $6 billion in tokenized assets now residing on its blockchain. This achievement is not merely theoretical but represents real-world funds managed by some of the most powerful names in global finance, including BlackRock and Franklin Templeton. The surge in tokenized assets began in mid-2023 and accelerated in early 2025 as institutions embraced the faster, on-chain finance offered by Ethereum.

BlackRock leads the way with the largest share of tokenized assets on Ethereum, closely followed by Franklin Templeton, WisdomTree, Superstate, Apollo, and Ondo Finance. These institutions have shown a clear shift towards Ethereum, utilizing its infrastructure for tokenizing parts of their funds. For instance, Franklin Templeton has focused on tokenizing portions of its U.S. Government Money Fund, while WisdomTree has built app-accessible funds designed for on-chain interaction. The consistent flows from these players suggest a strong conviction in Ethereum’s capabilities.

The adoption of tokenized assets on Ethereum did not happen overnight. Institutional tokenization started slowly in mid-2023, accelerated in 2024, and then exploded in early 2025. January marked a significant jump in token issuance, largely driven by BlackRock and Franklin Templeton ramping up their activity. This shift is driven by the settlement speed, cost savings, and auditable transparency that on-chain trades offer. On-chain trades can settle in seconds instead of days, reducing paperwork, middlemen, and improving reporting—exactly what institutional capital has wanted for years.

Despite the growing adoption, Ethereum still faces challenges such as scaling, gas fees, and regulatory uncertainty. If fees spike again, it could push firms toward private chains or competitors like Solana and Avalanche. Some institutions are already exploring multi-chain or hybrid models. Regulation is another unknown, as U.S., European, and Asian regulators haven’t set clear rules for tokenized funds. A crackdown in one region could shift activity elsewhere or stall adoption altogether.

The $6 billion milestone shows that tokenization is no longer experimental. Ethereum has become the go-to platform for institutional fund tokenization. While it leads for now, the coming year will bring intense pressure from faster, cheaper, and more tailored blockchain platforms. Ethereum’s head start matters, though. With the biggest asset managers already committed, the foundation is set. If scalability and regulatory clarity improve, new fund types, cross-border liquidity pools, and fully on-chain asset management models could emerge at scale.