Tokenization of real-world assets is moving from a niche crypto concept to a market structure project backed by major financial firms. By mid-2026, the on-chain market for tokenized real-world assets, excluding stablecoins, had reached roughly $30 billion to $34 billion, with tokenized U.S. Treasuries holding the largest share.
In simple terms, tokenization turns ownership of assets such as Treasury bills, stocks, and real estate into blockchain-based tokens. The asset itself still sits with a custodian, and legal rights, audits, and regulation remain off-chain. What changes is the ownership record and the way it moves. Instead of relying only on brokers, clearinghouses, and private databases, the claim is represented by a token in a wallet and transferred through blockchain transactions.
Tokens carry ownership claims while the asset stays off-chain
The source stresses that a tokenized asset is not a picture of an asset and not a loose promise tied to it. It is a legal and technical wrapper. A tokenized Treasury, for example, exists as a token on networks such as Ethereum, while the actual Treasury security is held by a custodian in the traditional financial system. The blockchain records ownership, transfer, and settlement. Custody, audits, and enforceability still depend on off-chain institutions.
That split explains both the appeal and the limits of the model. The on-chain side makes ownership easier to move and track. The off-chain side remains essential because it is where the real asset sits and where the legal claim is enforced.
Treasure bills lead the market, followed by private credit and tokenized stocks
The assets being brought on-chain are not evenly distributed. Tokenized U.S. Treasuries are the largest category by a wide margin. They are followed by private credit, then tokenized stocks and other equity exposure. The article also points to commodities such as tokenized gold, along with the slower and more complex push into tokenized real estate.
All of these products aim at the same problem. Traditional assets often move slowly, require larger minimum allocations, and settle through multiple intermediaries. Tokenization tries to make them behave more like crypto assets, with faster transfer and settlement on blockchain rails.
Compliance-aware token standards control who can hold and receive them
The process starts with an issuer, typically a regulated firm that holds or controls the underlying asset and stands behind the tokens it creates. The asset is placed with a custodian, then tokens are minted on-chain against that position. Many tokenized securities use standards such as ERC-3643, which allow compliance checks to be enforced at the smart contract level.
That means a tokenized security does not move as freely as a typical cryptocurrency. Only wallets that pass identity and eligibility checks can hold or receive it. Issuers and transfer agents also need to keep on-chain supply matched with the off-chain asset pool, while audits confirm that backing. Once a holder is approved, the token can be delivered to a wallet and, depending on the product, transferred, redeemed, or posted as collateral.
Faster settlement and 24/7 markets are central to the pitch
The article identifies four main reasons financial firms care about tokenization. The first is settlement speed: on-chain transfers can complete in seconds or minutes rather than taking a day or more. The second is fractional ownership, which allows assets to be split into smaller units. The third is continuous market access, since blockchains do not close at the end of the trading day. The fourth is composability, meaning a tokenized asset can interact with lending protocols, stablecoins, and automated on-chain strategies.
That last point matters in crypto. An asset that would normally sit passively in a traditional account becomes something software can use directly on-chain. The shift is less about replacing custodians or regulators and more about changing how ownership is recorded, transferred, and integrated with digital markets.
Large institutions are now driving the expansion
The growth figures in the article are sharp. The on-chain RWA market stood at roughly $5 billion to $6 billion at the start of 2025 and climbed to about $30 billion to $34 billion by mid-2026. The sector grew about 263% during 2025, according to the source. Tokenized U.S. Treasuries account for about $15 billion, while Ethereum hosts roughly 60% of total RWA value.
BlackRock's tokenized Treasury fund, BUIDL, has grown past $2 billion, making it the largest single product in the category. The article says BUIDL went live on Uniswap in early 2026, marking the first time a major asset manager connected a regulated tokenized fund directly to a decentralized exchange. Ondo Finance holds a large share of the tokenized stock segment through its Global Markets platform, while private credit represents roughly 17% of the overall market.
The change in participants may matter more than the headline size. Earlier tokenization efforts were led mainly by crypto-native projects. The 2026 push is being shaped by asset managers, custodians, and market infrastructure firms. The article also notes that DTCC plans to launch a regulated tokenization service on the Stellar blockchain, covering tokenized Russell 1000 stocks, ETFs, and Treasuries. That places tokenization much closer to the core of traditional securities settlement than previous crypto-led experiments.