You might have heard this saying: “It starts very slowly, then suddenly.”
This saying describes the development of tokenized assets (Tokenized Assets).
According to IBM's latest report:
> “By 2030, tokenized assets, stablecoins and central bank digital currencies (CBDC) will no longer be experiments—they will be standard equipment.”
This is not science fiction—it is happening.
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What are tokenized assets?
Simple definition
Tokenization refers to converting traditional assets into digital tokens on the blockchain.
| Traditional Assets | Tokenized Version |
|----------|------------|
| Stocks | Tokenized Stocks |
| Bonds | Tokenized Bonds |
| Real Estate | Tokenized Real Estate |
| Funds | Tokenized Funds |
| Gold | Tokenized Gold |
Core advantages
According to IBM's report:
1. Instant transfers—assets and value can be transferred instantly at any time and place
2. Key to reducing costs—reduce reliance on slow intermediaries
3. Higher transparency—transaction records on the blockchain are tamper-proof
4. 24/7 trading—no longer limited by traditional market hours
5. Fragmented ownership—you can purchase a small portion of assets
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Why is TradFi suddenly so interested in tokenization?
1. Major institutional predictions
McKinsey first predicted in July 2024:
> By 2030, the tokenized market capitalization could reach 2 trillion USD (range 1-4 trillion), excluding stablecoins and tokenized deposits
> BCG (Boston Consulting Group) predicts:
> By 2030, the tokenized assets market size is expected to reach 16.1 trillion USD; in the longer term, by 2033, the scale could reach up to 18.9 trillion USD, with extremely high compound annual growth rate.
These predictions vary widely, but the common point is that there is room for growth by tens of times.
This is a huge market opportunity.
2. Customer demand
- Young investors: Accustomed to instant, 24/7 trading
- Institutional investors: Want more efficient settlement processes
- Cross-border investors: Do not want to be troubled by remittance times and fees
3. Competitive pressure
If traditional banks do not provide tokenized services—
Customers will turn to crypto-native companies or fintech companies.
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The importance of tokenization to TradFi
For banks
| Traditional Mode | Tokenized Mode |
|----------|------------|
| Manual approval | Automatic smart contracts |
| T+2 settlement | Instant settlement |
| Limited operating hours | 24/7 tradable |
| High fees | Low marginal costs |
Banks can: Reduce operating costs, improve efficiency, and attract young customers.
For asset management companies
- Faster capital flow: Customers can buy in/sell out at any time
- New revenue sources: Tokenization service fees
- Expand customer base: Fragmentation allows small investors to participate
For chief financial officers (CFO)
According to PYMNTS's report, CFOs are:
- Tokenizing oil (24/7 trading)
- Tokenizing government bonds
- Tokenizing money market funds
Reason: There is still trading demand when traditional markets are closed.
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Real cases
1. Tokenized oil
In March 2026, due to the Iran war causing traditional markets to close—
Tokenized oil trading volume surged.
Investors can trade oil through the blockchain 24/7 without waiting for traditional markets to open.
2. Tokenized government bonds
Large institutions are starting to tokenize government bonds:
- Faster settlement
- Higher liquidity
- Programmability (smart contracts execute automatically)
3. Tokenized deposits
The UK's Monument Bank announced:
> “Tokenizing 250 million GBP of retail deposits”
This is the first case in the UK.
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Challenges and risks
Regulatory uncertainty
- Different countries have different regulations for tokenized assets
- Compliance costs may be high
- Legal frameworks are still evolving
Technical risks
- Blockchain may have vulnerabilities
- Smart contracts may have errors
- Private key management is a problem
Adoption speed
- Requires substantial infrastructure investment
- Customer education takes time
- Compatibility with traditional systems
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Implications for investors
Short term
- Pay attention to tokenized-related stocks:
- Coinbase (exchange)
- Circle (USDC)
- Chainlink (Oracle)
- Traditional banks such as JPMorgan Chase, Wells Fargo
Mid term
- Tokenized ETFs may emerge
- Traditional financial institutions will accelerate their layouts
Long term
- If the 2 trillion USD prediction comes true—
- This will be “one of the largest transformations in financial history”
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Conclusion: We are approaching “suddenly”
IBM's report says:
> “We may be approaching the end of the ‘very slowly’ phase. The moment of ‘suddenly’ may come very soon.”
This means:
Tokenization is not a question of “whether it will happen,” but “when it will happen.”
For traditional financial institutions—
This is a matter of survival.
For investors—
This is a matter of opportunity.
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Final thoughts
Ten years ago, we thought Bitcoin was an “experiment.”
Five years ago, we thought DeFi was a “toy.”
Now, we find:
The biggest transformation is not coming from crypto-native companies—but from traditional financial institutions.
When JPMorgan Chase starts tokenizing government bonds,
When Monument Bank tokenizes deposits,
When McKinsey predicts a 2 trillion USD market—
This is not a question of “if.”
This is a question of “when.”