Tokenization Market to Hit $2 Trillion by 2028 Amid Institutional Growth and Regulatory Support

The tokenization market—representing assets backed by cryptocurrency—could expand to over $2 trillion in five years, according to Ritesh Kakkad, Co-Founder of XDC Network. This projection places the current market at approximately $256 billion in 2025 and forecasts a significant rise to about $2 trillion by 2028 [1]. Kakkad attributes this anticipated growth to advancements in infrastructure by major institutions and regulators, which are facilitating the integration of tokenized assets into the global financial system.

Stablecoins, which are pegged to traditional currencies, are currently the most developed segment of tokenized assets. Kakkad highlighted the role of financial institutions such as BlackRock, Bank of America, and Coinbase in developing tokenized equity and money-market funds. For instance, BlackRock’s BUILD Funds combine blockchain-based infrastructure with traditional money market approaches, demonstrating the growing synergy between on-chain and off-chain systems [1].

According to Kakkad, favorable regulatory environments in the U.S., U.K., and Singapore are critical enablers of this transformation. The European Union’s Markets in Crypto-Assets (MiCA) regulation, enacted in 2023, has also contributed to a stable and attractive environment for global investors. In the U.S., the White House’s crypto policy roadmap released in July 2025 emphasizes coordinated agency efforts to support tokenization and blockchain innovation [1].

Tokenization allows high-value assets like real estate, private equity, and art to be divided into smaller, tradeable units, enabling fractional ownership. This process enhances accessibility, liquidity, and transparency. Kakkad noted that blockchain’s immutable ledger ensures a transparent chain of ownership, which fosters trust and supports 24/7 global trading [1].

The advantages of tokenization over traditional assets include lower entry costs, faster cross-border settlements, and enhanced auditability. Additionally, smart contracts allow for seamless integration into financial protocols, enabling programmable assets that can respond to predefined conditions [1].

Institutional adoption is already gaining momentum. Digital assets are expected to enter repo markets, collateralized lending, and treasury operations in the next couple of years. Large-scale initiatives such as JP Morgan’s Kinexys platform and Singapore’s Canton Network have already launched tokenized bonds, gold, and gilts, involving partners like Goldman Sachs and Euroclear [1].

Kakkad emphasized that tokenization is democratizing investment opportunities. With the ability to invest in high-value assets using only hundreds or tens of dollars, the financial landscape is becoming more inclusive. This shift, he argued, levels the playing field and expands access to wealth creation for a broader demographic [1].

Regulatory convergence through organizations like the International Organization of Securities Commissions (IOSCO) and the Financial Stability Board is also supporting cross-border interoperability. This development will allow tokenized assets to move more freely between countries, blockchains, and investor types, further enhancing their utility and reach [1].

Source: [1] Tokenization Market Could Grow To $2 Trillion In 5 Years, Expert Says (https://www.benzinga.com/crypto/cryptocurrency/25/08/47098895/tokenization-market-could-grow-to-2-trillion-in-5-years?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)