Asset Tokenization Market Expands as Institutional Investors Adopt Blockchain-Based Financial Infrastructure

The Asset Tokenization Market is projected to reach USD 130.67 trillion by 2035, growing at a 45.83% CAGR, while the U.S. market is projected to reach USD 50.86 trillion, advancing at 46.24% CAGR, as institutional tokenization programs expand blockchain-based financial infrastructure.

Austin, Sept. 18, 2026 (GLOBE NEWSWIRE) — The global Asset Tokenization Market was valued at USD 3.00 trillion in 2025 and is projected to reach USD 130.67 trillion by 2035, expanding at a CAGR of 45.83% during 2026–2035. Demand is being supported by institutional adoption, fractional ownership of traditionally illiquid assets, near-instant settlement, programmable financial infrastructure and increasing deployment of blockchain-based asset platforms.

The U.S. Asset Tokenization Market was valued at approximately USD 1.12 trillion in 2025 and is projected to reach approximately USD 50.86 trillion by 2035, growing at a CAGR of 46.24% during 2026–2035. Growth is being supported by institutional tokenization programs, tokenized investment funds, blockchain-based payment infrastructure and increasing deployment of digital assets across financial services.

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Why this Market is Gaining Attention in 2026

Institutional Adoption is Moving Tokenization into Mainstream Finance

The asset tokenization opportunity is increasingly connected to institutional adoption rather than blockchain experimentation alone. Tokenized investment vehicles offered by large asset management companies and financial firms are showing how the blockchain network can enable fund issuance, clearing and settlements, record keeping, and programmable financial transactions.

Blackrock’s BUIDL fund, tokenized investment fund from UBS Asset Management, and several others have increased trust in tokenized financial infrastructure. This has increased the use of tokenization beyond the realm of funds, bonds, and private markets into other financial instruments as well.

Fractional Ownership is Expanding Access to Traditionally Illiquid Assets

Tokenization of assets allows for representation of ownership rights to real estate, private equity, bonds, commodities and many other kinds of assets in terms of divisible digital tokens. Such an approach may help reduce the barriers for investments into such kinds of assets and increase secondary market access. Opportunity is even more compelling within real estate and private equity spaces because tokenization allows fractional ownership, automation of dividend payouts and improved secondary trading mechanisms. This helps to expand the pool of potential investors while providing alternative liquidity paths for illiquid investments.

Regulatory Development and Blockchain Infrastructure Expand the Tokenization Opportunity

The opportunity is expanding further through the development of clearer frameworks for digital assets and interoperable blockchain technology by governments, finance firms, and tech companies. The regulatory environment in important financial centers, interoperability across different blockchains, and connectivity to traditional financial messaging systems is facilitating institutional participation.

This allows for an increased opportunity for tokenized assets to function within traditional finance and blockchain systems alike, creating opportunities within investment vehicles, government debt, private credit markets, real estate and other asset types.

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Commercial Findings from the Asset Tokenization Market

Real Estate is Predominant while Private Equity is the Fastest Growing Asset Class: Real estate is 30% of the market by asset classes in 2025 on account of the possibility of fractional ownership, income distribution, and secondary market liquidity of an asset class known to be highly illiquid. The private equity is the fastest growing asset class and is expected to grow at a rate of 49.62% CAGR through the forecast period on account of increased liquidity and efficient secondary market trading of private equity.

The Institutional Investors are Dominant While Retail Investors are the Fastest-Growing Investor Class: The institutional investors represent about 69% of total investment in 2025 due to large balance sheets, blockchain know-how and wider use of tokenization of traditional financial assets. Retail investors constitute the fastest-growing category of investors and are expected to grow at around 47% CAGR due to availability of fractional ownership facilities and traditional asset classes that are usually reserved for institutions.

Regional Investment is Reshaping Tokenization Adoption: North America held a share of about 39% of the global Asset Tokenization Market in 2025 owing to the presence of blockchain technology adoption among institutions in the region as well as the existing financial services sector in the United States. The Asia Pacific is anticipated to hold the largest growth rate during the forecast period with a CAGR of around 48.19% owing to the development of digital assets regulations in the region.

Who Should be Watching the Asset Tokenization Market?

The market is increasingly relevant across the broader financial and digital-asset ecosystem, including:

Asset Managers → Institutional Investors → Pension Funds → Insurers → Sovereign Wealth Funds → Tokenization Platforms → Financial Institutions → Blockchain Infrastructure Providers → Digital-Asset Service Providers

Tokenization and financial firms, however, are not just limited to converting traditional assets into digital tokens; competitive positioning is now also becoming about regulatory compliance, blockchain compatibility, security of smart contracts, proper infrastructural support, and liquidity generation. The process of tokenization, for investors, on the other hand, may help in increasing accessibility and improving secondary market liquidity.

Institutional Tokenization Programs and Infrastructure Expansion Shape the 2026 Market

As tokenized finance infrastructure is approaching more institutional usage, the market actors are placing growing emphasis on regulated digital assets, tokenized investment vehicles, and blockchain finance infrastructure.

• In June 2025, Hong Kong has launched a strategic approach towards digital assets, including a licensing regime for stablecoins and tokenization of government bonds, helping to establish institutional asset tokenization in Asia Pacific.
• In November 2024, UBS USD Money Market Investment Fund Token is one of the investment funds that UBS Asset Management introduced as its first tokenized investment fund.

Market Challenge: Regulatory Fragmentation and Infrastructure Risk Limit Cross-Border Scale

Asset tokenization functions in different legal frameworks, which leads to compliance complications in an international context when it comes to institutional implementation and trading. Vulnerabilities in smart contracts may lead to security issues, while the lack of cross-chain interoperability may result in fragmentation of liquidity on different blockchain networks.

Due to this, asset tokenization companies will be in competition not just for blockchain capabilities, but also regulation, security of smart contracts, interoperability, high-quality infrastructure, and the capacity to generate liquidity.

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Key Competitors in the Market

Companies covered in the Asset Tokenization Market research include Securitize Inc., BlackRock Inc. (BUIDL Fund), Franklin Templeton (FOBXX), Fireblocks Ltd., Tokeny Solutions, Polymath Network, tZERO Group Inc., Vertalo Inc., Stobox Technologies, SoluLab Inc., Antier Solutions, Maticz Technologies, BlockchainX, Harbor (Republic), Ondo Finance, Backed Finance, RealT LLC, Zoniqx Inc., Clearpool Finance, and DigiShares A/S.

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