Tokenized Asset Market Surges to $270B Led by Ethereum Growth

Keu Highlights:

• Tokenized assets under management reach a record $270B, with Ethereum holding a 55% market share.
• USDT, USDC, and BlackRock’s BUIDL fund lead tokenized asset volume on Ethereum.
• Deloitte forecasts tokenized real estate could grow to $4 trillion by 2035.

Tokenized Asset Market Hits Record $270B, Driven by Ethereum and Institutions

The volume of assets under management (AUM) in the tokenized assets segment has reached a historic high of approximately $270 billion, according to analytics platform Token Terminal.

Tokenized assets encompass a wide array of financial products, including currencies, commodities, treasury bonds, private credit, private equity, and venture capital. The growth is largely being driven by institutional investors, who are using blockchain to enhance the efficiency, transparency, and accessibility of traditional markets.

Ethereum remains the leading blockchain for these assets, currently commanding around 55% of the total market share. Its dominance stems from a mature smart contract ecosystem and widely adopted standards like ERC-20.

Notable examples of tokenized assets on Ethereum include USDT and USDC stablecoins, as well as BlackRock’s tokenized BUIDL fund, which was launched in collaboration with the Securitize platform.

Real-World Asset Tokenization Expands Across Stablecoins, Funds, and Real Estate

Innovations such as the ERC-3643 token standard have facilitated the tokenization of real-world assets (RWAs) like real estate, art, and private equity.

Deloitte has projected the tokenized real estate sector could expand to $4 trillion by 2035, underscoring growing institutional interest.

Recent events highlight this trend:

• In May, BlackRock’s BUIDL fund was integrated with the DeFi protocol Euler Finance.
• In July, reports revealed that crypto firms are shifting from stablecoins to tokenized treasury funds due to better yield and lower volatility.

Meanwhile, the tokenized stock market has grown to $403 million, with firms like eToro preparing to launch tokenized offerings on Ethereum.