TL;DR: Tokenized assets are no longer being issued in controlled trials: they are being traded, used as collateral, and settled through institutional infrastructure, which is already live. DTCC has conducted production transactions using tokenized securities, the Eurosystem has launched central bank money settlement for tokenized assets, JPMorgan is operating tokenization infrastructure, which processes $7 billion+ per day, and on-chain data shows tokenized assets are increasingly being used rather than held. The next challenge is no longer proving that tokenization works but making the underlying infrastructure interoperable at scale.
Key Takeaways
- DTCC is already processing real tokenized securities involving repo, collateral, margin, and more.
- Central bank infrastructure is longer hypothetical, with the Eurosystems’ Pontes service now live, while tokenized transactions can also settle in central bank money.
- Trading, collateral, settlement, and other types of transactions are happening today.
- Interoperability is the next bottleneck, as tokenized transactions remain fragmented across ledgers and need a universal, scalable infrastructure for execution and settlement.
In 2024, BlackRock (NASDAQ: BLK) CEO Larry Fink told us the tokenization of everything was coming.
Since then, issuance and experimentation with tokenization (phase one) has well and truly moved into utility (phase two). And we’re not just talking about a few small-scale trials inside sandboxes—tokens are becoming part of the workflow inside financial systems globally.
According to a Q2 report from CoinShares, real-world asset (RWA) deposits in lending platforms and decentralized exchanges rose to $7.4 billion between Q2 2025 and Q2 2026, even as overall decentralized finance (DeFi) deposits fell. RWA spot trading rose roughly 220% while overall decentralized exchange (DEX) spot activity fell around 70%.
However, the use cases extend far beyond DeFi and the broader blockchain industry.
In July 2026, DTCC converted DTC-held securities into tokens and used them in production transactions, including collateral pledges, securities lending, US Treasury repo delivery-versus-payment, equity DVP, equity delivery-versus-delivery, token transfers, and central-counterparty margin workflows.
DTC custodies more than $114 trillion in assets, meaning the institution that underpins a large part of the U.S. securities market has already tokenized securities in its production environment and used them for the transaction types outlined above.
In September 2026, the Eurosystem launched Pontes, connecting market DLT platforms with TARGET Services so wholesale tokenized-asset transactions can settle in central bank money. In just two years, one of the world’s largest central banks has gone from experimenting with 50 transactions across nine jurisdictions to a live system for settlement of tokenized wholesale assets in central-bank money. Next, the European Central Bank (ECB) plans to invest some of its own funds in tokenized securities.
Yet, it isn’t only traditional securities being tokenized. JPMorgan (NASDAQ: JPM) says its Kinexys system has now processed more than $3 trillion since its inception and averages $7 billion in daily transactions. Its capabilities include programmable payments, digital financing, tokenized collateral, and tokenized money-market funds.
Where will all of these tokens live?
Clearly, tokenization has moved from a series of novel experiments to full production and use within the financial system.
However, a larger question remains unanswered: Where will all of these tokens live?
If tokens reside in private databases controlled by various banks and institutions, many of the benefits will not be realized. Problems related to interoperability, communication across networks, and interaction at the financial market scale will become apparent as progress continues.
Even if tokens are issued on different public blockchains, many of these issues will remain. Tokens issued on Ethereum may not interact smoothly with tokens on Solana, and a holder of assets wanting to move from one platform to another may find themselves locked in or facing a “burn and reissue” situation.
Bridges between networks are often presented as a potential solution. However, these introduce new problems of their own. Bridge hacks have plagued the blockchain industry since their inception, and some have left projects dead in the water. When dealing with trillions of dollars in the global financial industry, security is of paramount importance.
The institutions already using tokens are aware of the challenges around interoperability. DTCC uses both Besu and Canton, and its strategy includes additional networks. The ECB is even more explicit, warning that without coordination, tokenized finance could become a collection of non-interoperable networks and standards that fragment liquidity, limit competition, and inhibit innovation.
The proof of concept has been answered, but the scaling question hasn’t
The examples above show that the question of whether tokenization can become real has been answered. It is real, live, and in production today.
However, while the various institutions behind real-world tokenization projects have identified problems with interoperability, a solution has not yet become apparent.
As long as this problem remains abstract, institutions can issue $10 billion of tokenized bonds on one network and a fund on Network B, and both will work fine. Once interaction becomes necessary, the problem becomes concrete, and real solutions will be required.
A brief tokenization timeline
CoinGeek has been tracking tokenization since its inception. Here’s a brief summary of how things have progressed and the questions being answered in each phase.
- 2018-2023: Can tokenized assets be represented on-chain?
- 2023-2025: Can regulated institutions issue them safely?
- 2025-2026: Can they be used for trading, collateral, and settlement?
- Next: Can all of this operate together at the necessary scale?
FAQs:
What is asset tokenization?
Asset tokenization is the process of representing ownership or rights to an asset on a blockchain or other digital ledger. Once issued, the token can be held, traded, transferred, settled, or managed digitally.
Is asset tokenization already being used in production?
Yes. Tokenization has moved from pilots and controlled experiments to live production. Financial institutions like DTCC have converted DTC-held securities into tokens, the Eurosystem has launched infrastructure to settle tokenized assets in central bank money, and firms like JPMorgan are using tokenized assets for funds, bonds, and collateral.
What assets are being tokenized today?
Tokenization is already being applied to government bonds, securities, equities, deposits, and money market funds.
Why do financial institutions tokenize assets?
Financial institutions are using tokenization to make the transfer, settlement, and use of various assets easier and more efficient. Eventually, multiple parties can work from a shared digital ledger, making tracing, tracking, and reconciling assets quicker and more transparent.
What is stopping tokenization from scaling further?
Challenges include interoperability between digital ledgers and blockchains, integration with existing financial infrastructure, regulatory considerations, privacy and security concerns, and the ability to process transaction volume at scale.
Watch | Tokenize: LDN 2025 Sees Real-World Assets Go On-Chain in the UK
Be the first to comment