Pantera Capital’s Q1 2026 State of Tokenization report reveals that the $320.6 billion tokenized asset market has expanded in breadth without gaining structural depth. Nearly 78% of tracked products still function as blockchain receipts for off-chain assets. Using its Tokenization Progress Index (TPI) — a three-dimensional framework scoring issuance, transferability, and composability on a 1–5 scale — the report grades 542 live assets across 11 classes and finds a market average of just 2.04.
78% Fall Into the Lowest 'Wrapper' Tier
Of the scored assets, 77.6% land in the Wrapper tier, 11.1% in Hybrid, and only 2.7% reach Native. Pantera likens this to the “newspaper-on-a-website phase” of early internet media, where print content was moved online without redesigning for the new medium. Issuance and redemption is the weakest dimension, averaging only 1.82. Out of 542 assets, 494 (91.1%) score 1 or 2, meaning gated minting and intermediary-controlled exits dominate; just 13 assets score 4 or 5.
Regulatory Structure Locks On-Chain Depth
Regulation shapes the landscape. US-domiciled assets average a 2.0 composite TPI, with SEC-regulated products clustering toward wrapper patterns. The Canton Network, backed by Goldman Sachs and BNY Mellon through Digital Asset, averages approximately 1.75, below the market mean — a structural outcome of permissioned design that trades on-chain autonomy for compliance control. Pantera notes that 88% of scored assets remain in what it calls Phase 1 of the tokenization lifecycle, warning the market risks treating this starting point as a permanent ceiling.
Stablecoins: The Only Class Combining Scale With On-Chain Utility
Stablecoins account for roughly $293 billion, or 92% of total tracked value, and average a composite TPI of 2.67, the highest across all asset classes. Pantera identifies them as the only category pairing large-scale market presence with meaningful on-chain utility. US Treasury tokenized products follow at roughly $12 billion, though most carry Tier 1 wrapper architectures despite institutional backing from BlackRock, Franklin Templeton, WisdomTree, Fidelity, and Janus Henderson.
Private Credit: Deepest DeFi Integration Among Non-Stablecoins
Private Credit has emerged as the most DeFi-composed non-stablecoin category, with 64.3% of its market value active in DeFi, primarily via Maple’s syrupUSDT and syrupUSDC. Real Estate and Corporate Bonds remain at near-zero DeFi utilization. The market added roughly $120.5 billion since 2024 and recorded 168 new tokenized asset launches in 2025, up from 78 the prior year, yet most new entrants replicate low-maturity wrapper structures rather than building deeper on-chain functionality.