1. A New Chapter for Cryptocurrency
For much of its existence, cryptocurrency has been associated with Bitcoin, speculative trading, decentralised finance and the possibility of creating an alternative financial system.
But a different development is beginning to attract the attention of some of the world's largest financial institutions: the tokenisation of real-world assets.
Tokenisation is the process of representing ownership rights or financial claims as digital tokens on a blockchain or another programmable digital platform. These tokens can represent assets such as government bonds, money-market funds, company shares, commodities, private credit and property.
The concept is significant because it could change how financial assets are issued, transferred, recorded and settled.
Traditional financial markets often rely on multiple intermediaries, separate databases and systems that must communicate with one another before transactions can be completed. Blockchain-based infrastructure offers the possibility of recording ownership and transferring assets through a shared digital system.
The World Economic Forum's 2025 report on asset tokenisation identifies potential benefits including improved transparency, programmability, fractional ownership and more efficient financial processes.
However, tokenisation is not yet a replacement for traditional financial infrastructure. It is an emerging technology whose adoption depends on regulation, liquidity, investor protection and whether it can deliver meaningful improvements over existing systems.
The important question is no longer simply whether blockchain can be used in finance. It is whether financial institutions will increasingly use it to support the markets they already operate.
2. What Exactly Is a Tokenised Asset?
Imagine an investment fund holding billions of pounds in government securities.
Traditionally, investors purchase units in the fund through established financial platforms. Ownership records are maintained through the fund's transfer agents, custodians and other financial intermediaries.
With tokenisation, the fund can issue digital tokens representing interests in that fund. These tokens can be recorded and transferred on a blockchain, subject to the fund's legal structure and investor restrictions.
The underlying assets do not necessarily move onto the blockchain. Instead, the blockchain records the digital representation of the investor's claim.
This distinction is important. Owning a token does not automatically mean owning the physical asset or having unrestricted legal rights to it. The rights attached to the token depend on the issuer, contractual arrangements and applicable law.
Tokenisation could offer several advantages:
Faster settlement: Transactions could potentially be completed more quickly than through traditional multi-stage settlement processes.
Fractional ownership: Investors could gain access to smaller portions of certain assets.
Programmability: Financial assets could be designed to follow predefined rules through smart contracts.
Greater transparency: Blockchain records can make certain transactions and ownership movements easier to verify.
Improved collateral management: Tokenised assets could potentially be transferred or pledged more efficiently in financial transactions.
The Bank for International Settlements (BIS) argues that tokenisation could integrate messaging, reconciliation and settlement into a more seamless process.
In practical terms, this could reduce some of the administrative complexity involved in moving money and financial assets between institutions.
3. Wall Street Is Already Exploring the Technology
One of the strongest signals that tokenisation is moving beyond cryptocurrency experimentation is the involvement of established financial institutions.
BlackRock, JPMorgan and other major financial players have been exploring blockchain-based financial products and infrastructure.
A particularly notable example is BlackRock's USD Institutional Digital Liquidity Fund, commonly known as BUIDL.
Launched in 2024, BUIDL is a tokenised fund that invests in cash, US Treasury bills and repurchase agreements. Its digital fund shares are issued on a blockchain, allowing eligible investors to hold tokenised interests in the fund.
The significance is not simply that a major asset manager has launched a blockchain product. It demonstrates how traditional investment products can be structured around digital ownership records.
Another example is JPMorgan's Kinexys platform, formerly known as Onyx. The platform uses blockchain technology to support institutional financial services, including payments and the movement of tokenised assets.
JPMorgan has described Kinexys as an effort to bring blockchain technology into mainstream financial services, with a focus on improving how institutions transfer money and manage financial operations. [4]
The development of these platforms suggests that some financial institutions are no longer treating blockchain purely as an experimental technology.
They are exploring how it can become part of their operational infrastructure.
4. The Tokenised Treasury Market Is Gaining Attention
Government bonds are among the most interesting candidates for tokenisation.
US Treasury securities are widely used by financial institutions as investment assets and collateral. They also play a central role in global financial markets.
Tokenised Treasury funds allow eligible investors to gain exposure to government securities through blockchain-based ownership structures.
This creates a potential bridge between traditional investment products and the cryptocurrency ecosystem.
For example, a tokenised Treasury fund could potentially be used within approved digital asset platforms as collateral, rather than requiring investors to liquidate their holdings and move traditional funds between separate systems.
There are already developments in this direction.
In April 2026, OKX, BlackRock and Standard Chartered announced a framework allowing BlackRock's BUIDL fund to be used as yield-bearing collateral for eligible trading clients. Standard Chartered provides the custody arrangement, while the tokenised fund can support trading activity on OKX. [5]
This is an important development because it demonstrates a practical use for tokenised assets beyond simply holding them as investments.
However, it is not the same as making the fund universally available as collateral. Access is subject to eligibility, custody arrangements and the framework's terms.
The broader opportunity is that tokenised financial products could eventually become more useful across different parts of the digital economy.
5. Which Blockchains Could Benefit?
The growth of tokenisation creates an important competitive question: which blockchain networks will become the preferred infrastructure for institutional financial markets?
There is no guaranteed winner.
Different networks offer different combinations of transaction speed, cost, security, programmability, privacy and regulatory compatibility.
Ethereum
<Entity value="Ethereum" category="software" disambig="Blockchain network"/> has established itself as a major platform for tokenised assets and decentralised finance. Its smart contract ecosystem and established developer community make it an important contender for financial applications.
XRP Ledger
<Entity value="XRP Ledger" category="software" disambig="Public blockchain network"/> is designed to support payments and the transfer of digital assets. Its tokenisation capabilities make it another network competing for a role in the emerging financial infrastructure market.
Stellar
<Entity value="Stellar" category="software" disambig="Blockchain payment and asset issuance network"/> focuses on payments and digital asset issuance. Its infrastructure is also being used in efforts to connect traditional financial assets with blockchain-based systems.
Solana
<Entity value="Solana" category="software" disambig="High-throughput blockchain network"/> offers high transaction throughput and relatively low transaction costs, making it attractive for applications requiring frequent digital asset transfers.
Avalanche
<Entity value="Avalanche" category="software" disambig="Blockchain platform"/> offers infrastructure for applications that require customisable blockchain environments and financial asset tokenisation.
These networks are not necessarily competing for exactly the same customers. Some financial institutions may prefer public blockchains, while others may favour permissioned networks or private infrastructure.
According to the RWA.xyz market dashboard, Ethereum, BNB Chain, Solana, Stellar and other networks already host tracked tokenised real-world assets. The dashboard's figures change over time and its categories distinguish between distributed assets and assets represented through other arrangements.
The larger point is that tokenisation is not tied to a single cryptocurrency.
A financial institution could use blockchain technology without necessarily needing to hold Bitcoin, Ethereum or XRP as a speculative investment. The network, the tokenised asset and the investment case for a cryptocurrency are separate considerations.
6. Stablecoins Could Become the Financial Plumbing
Tokenised assets need a way to be bought, sold and settled.
This is where stablecoins could become particularly important.
Stablecoins are digital tokens designed to maintain a relatively stable value against another asset, commonly the US dollar. They can provide a blockchain-based means of transferring value without requiring investors to move funds through traditional banking processes for every transaction.
In a tokenised financial market, stablecoins could potentially be used to purchase assets, transfer funds and settle transactions.
For example, an investor could purchase a tokenised fund using a compatible stablecoin, subject to the platform's rules and the relevant legal arrangements.
However, stablecoins are not all equivalent. Their reserves, redemption rights, governance, liquidity and regulatory treatment vary significantly.
The BIS has also raised concerns about whether stablecoins can fulfil all the functions required of the central monetary system. In its 2025 Annual Economic Report, it argues that tokenised central bank reserves and commercial bank money could provide a stronger foundation for a future tokenised financial system.
This raises an important possibility: the future of blockchain finance may involve a combination of stablecoins, tokenised bank deposits and central bank money rather than one universal digital currency.
7. The Financial Institutions Are Not Necessarily Choosing Public Blockchains
One misconception about the tokenisation revolution is that traditional banks will automatically move their financial operations onto existing public cryptocurrency networks.
That is not necessarily the case.
Some institutions may use public blockchains, while others may prefer private or permissioned networks that give them greater control over access, transaction visibility and compliance.
There are advantages and disadvantages to both approaches.
Public blockchains can offer open infrastructure, global accessibility and the ability for different applications to interact.
Private networks can provide more control over participants, transaction confidentiality and operational arrangements.
The BIS has proposed the concept of a unified ledger, which could bring tokenised central bank reserves, commercial bank money and financial assets together on a programmable platform.
Importantly, this concept does not require every financial institution to use one existing public blockchain. [6]
The distinction matters for cryptocurrency investors.
A bank adopting blockchain technology does not automatically create demand for every cryptocurrency associated with blockchain infrastructure.
The economic benefits may flow to technology providers, financial institutions, custodians and regulated tokenisation platforms, rather than directly to the holders of particular digital tokens.
8. The Investment Opportunity
Tokenisation could create opportunities across several areas of the financial and technology industries.
Blockchain infrastructure: Networks capable of supporting secure, reliable and scalable financial applications could benefit from greater institutional adoption.
Digital asset custody: Tokenised securities require secure custody arrangements, investor controls and reliable asset administration.
Financial technology: Companies developing token issuance, compliance, settlement and asset-management systems could become important infrastructure providers.
Stablecoin infrastructure: Businesses supporting digital payments, liquidity and settlement could benefit from increased use of blockchain-based financial products.
Traditional financial institutions: Banks and asset managers that successfully integrate tokenisation into existing services could potentially reduce costs and develop new products.
However, the investment case requires careful analysis.
The growth of tokenised assets does not automatically translate into rising cryptocurrency prices. Some networks may process large volumes of tokenised transactions while capturing relatively little direct economic value for their native tokens.
Investors need to examine how each network generates demand, whether its native token is necessary for transactions, how fees are structured and whether institutional adoption creates sustainable value.
The distinction between blockchain adoption and cryptocurrency investment performance is one of the most important issues in this market.
9. The Risks That Could Slow the Revolution
Despite its potential, tokenisation faces considerable obstacles.
Regulatory uncertainty
Financial assets operate within established legal frameworks. Tokenisation does not remove the need for securities laws, investor protections, anti-money-laundering requirements or reporting obligations.
Different countries also have different approaches to digital assets, creating challenges for institutions operating internationally.
Liquidity problems
A tokenised asset is not automatically liquid.
A fund or bond may be available as a digital token, but that does not guarantee sufficient buyers and sellers. Without active markets, investors may struggle to sell at a fair price.
Cybersecurity and smart contract vulnerabilities
Blockchain systems introduce new technical risks. Faulty smart contracts, compromised private keys and cyberattacks could lead to financial losses.
Custody and ownership
Investors need confidence that the digital token genuinely represents the underlying financial claim and that the relevant legal rights can be enforced.
Fragmented infrastructure
If different financial institutions build incompatible systems, tokenised markets could become fragmented rather than interconnected.
The European Securities and Markets Authority's 2026 risk monitor highlights that tokenisation is attracting increasing attention, but adoption remains limited and concentrated in relatively narrow applications.
This is a useful reminder that the technology's potential should not be confused with widespread commercial adoption.
10. Could Tokenisation Transform Global Finance by 2030?
The next few years could be important for the development of tokenised financial markets.
Financial institutions are already testing and deploying products that connect blockchain infrastructure with traditional assets. Government securities, money-market funds and private credit are among the areas attracting attention.
The OECD's 2025 research nevertheless identifies several obstacles to wider adoption, including regulatory uncertainty, market structure and the practical difficulties of developing functioning tokenised markets.
The future will depend on whether institutions can move beyond isolated products and build infrastructure that works across different markets, jurisdictions and financial systems.
If that happens, investors could eventually interact with financial products in ways that are very different from today's traditional brokerage and banking systems.
A government bond, investment fund or other eligible asset could potentially be issued, transferred and settled through blockchain-based infrastructure.
But there is another possibility: tokenisation may develop more slowly, remaining concentrated in institutional markets and specialised financial products rather than transforming everyday investing.
Both outcomes are plausible.
The technology has demonstrated useful applications, but the scale of its future impact remains uncertain.
11. The Future of Crypto May Be Bigger Than Cryptocurrency
The cryptocurrency industry has spent years trying to establish itself as an alternative to traditional finance.
Tokenisation introduces a different possibility.
Rather than replacing banks, investment funds and financial markets, blockchain technology could become an additional layer of infrastructure supporting them.
The most important development may not be the launch of another cryptocurrency or the next major Bitcoin rally. It could be the gradual movement of traditional financial assets onto programmable digital platforms.
For investors, this creates a more complicated opportunity than simply buying the cryptocurrency associated with a particular blockchain.
The winners may include blockchain networks, technology providers, custodians, payment companies and established financial institutions that successfully adapt.
There will also be companies and projects that fail to turn the technology into commercially useful products.
The tokenisation revolution is still developing, and there is no guarantee that it will unfold as its strongest supporters expect.
But one thing is becoming increasingly clear: blockchain technology is no longer being discussed exclusively by cryptocurrency enthusiasts. It is now part of a much wider conversation about the future architecture of global finance.
The next phase of crypto may not be about taking on Wall Street. It may be about becoming part of Wall Street itself.
Sources
World Economic Forum – Asset Tokenization in Financial Markets: The Next Generation of Value Exchange (21 May 2025)
Bank for International Settlements – The Next-Generation Monetary and Financial System (24 June 2025)
Coinbase Institutional – Major Trends in Tokenization (10 January 2026)
J.P. Morgan – Introducing Kinexys by J.P. Morgan (6 November 2024)
Standard Chartered – OKX, BlackRock and Standard Chartered Launch Joint Framework for Tokenised Real-World Assets (28 April 2026)
Bank for International Settlements – The Next-Generation Monetary and Financial System: Unified Ledger
RWA.xyz – Global Tokenised Real-World Asset Market Data
European Securities and Markets Authority – Trends, Risks and Vulnerabilities: Risk Monitor No. 1, 2026
OECD – Tokenisation of Assets and Distributed Ledger Technologies in Financial Markets (9 January 2025)
Bank for International Settlements – Financial Stability Implications of Tokenisation (28 August 2025)
Published by Banx Network. This article is part of the Banx decentralized media programme, powered by the BXE token on the XRP Ledger.
