Tokenized Assets Near $300 Billion as Wall Street Floods On Chain

Tokenized assets recorded on public blockchains have approached $300 billion, with stablecoins accounting for nearly $267 billion of that total [1]. The remainder, approximately $26.3 billion, represents tokenized real-world assets such as U.S. Treasuries, money-market funds, private credit, commodities, and corporate debt instruments. The segment of tokenized U.S. Treasuries has been a key driver of this growth, rising from over $5 billion in March to nearly $7.3 billion as of the time of reporting [1]. BlackRock’s BUIDL fund leads the category with $2.4 billion, followed by Franklin Templeton’s BENJI fund at $700 million [1].

The acceleration in tokenized short-term debt issuance has been fueled by the current high-interest-rate environment, which has drawn capital toward yield-generating products such as tokenized money-market funds and Treasury instruments. These assets have seen nearly an 80% year-to-date increase, reaching $7.4 billion by midsummer [1]. Institutional adoption is central to this trend, with firms like BlackRock and Franklin Templeton integrating tokenization into their on-chain infrastructure, effectively treating tokenized funds as alternatives to non-interest-bearing stablecoins [1].

Stablecoins remain the dominant category in tokenized assets, with over 189 million holders globally. These instruments serve as an entry point to tokenized finance and indirectly support the Treasury market through reserve allocations. The increasing scale of stablecoin holdings has created a structural demand for short-term U.S. government securities, reinforcing the link between on-chain activity and traditional financial markets [1]. This dynamic has also elevated the importance of regulatory considerations, particularly in how stablecoins are governed and integrated into broader financial systems.

Beyond stablecoins, tokenized assets are diversifying into categories such as private credit, institutional funds, and commodities, though these remain smaller in scale. Ethereum currently holds more than half of the non-stablecoin RWA share, while networks like ZKsync, Solana, Stellar, and Aptos are also capturing portions of the issuance [1]. This decentralization of tokenization infrastructure suggests that it is functioning both as a settlement mechanism and a tool for structuring regulated financial products on public ledgers.

Institutional participation has expanded to include banks and custodians, with settlement portability and collateral efficiency cited as primary motivators. While not all initiatives occur on public blockchains, the ongoing development of tokenized rails highlights how traditional finance and crypto-native products are converging around common operational frameworks. The distinction between stablecoins as transactional units and tokenized funds as yield-generating products remains a key factor in how investors allocate capital across these categories.

The growth of tokenized assets near $300 billion signifies a transition from conceptual exploration to operational infrastructure. This shift reflects not only retail transactions through stablecoins but also institutional management of regulated securities, suggesting that tokenization has become a live component of the global financial system rather than a speculative frontier.

Source:

[1] Tokenized Assets Near $300 Billion as Wall Street Quietly Floods On Chain (https://cryptoslate.com/tokenized-assets-near-300-billion-as-wall-street-quietly-floods-on-chain/)