TL;DR
- Evolution: Tokenization advanced from Bitcoin to stablecoins to tokenized funds, enabling programmable finance with real-world assets.
- Growth: Tokenized Treasuries and MMFs are expanding faster than ETFs did in their first decade, with trillion-dollar potential.
- Credibility: Institutional launches by Franklin Templeton, BlackRock, and others, plus ratings from S&P and Moody’s, validate tokenized funds.
A new report co-authored by Libeara, a Standard Chartered Ventures–backed tokenization platform, highlights how tokenized funds are accelerating in adoption and may outpace the early trajectory of ETFs. The study, Real World Assets: A Practitioner’s Guide, emphasizes that tokenization is not merely digitization but the creation of programmable, composable assets capable of instant settlement on blockchain infrastructure.
Tokenisation is no longer theory
We teamed up with @rebankpodcast and @multiliquid_xyz to break it all down.📘 Real World Assets: A Practitioner’s Guide
🔗 https://t.co/aRAkE3agTM pic.twitter.com/DpDALiI4T2— Libeara (@libeara_) September 30, 2025
From Bitcoin to Stablecoins to Tokenized Funds
The report outlines three phases in the evolution of tokenization. The first began with Bitcoin, which introduced digital scarcity but proved too volatile for mainstream finance. The second phase emerged with Ethereum’s smart contracts, enabling programmable finance but relying heavily on unstable crypto-native collateral.
The third phase, starting around 2020, combined stablecoins with real-world assets such as Treasuries, money market funds, and private credit. This integration extended programmable finance into traditional markets and laid the foundation for institutional adoption.
Market Growth and Structural Drivers
Although tokenized funds remain small compared to traditional markets, their growth trajectory is notable. Tokenized Treasuries currently represent only a few billion dollars in assets under management versus the $20 trillion Treasury market. Yet their expansion mirrors the early rise of ETFs. CoinShares data shows tokenized money market funds are scaling faster than ETFs did in their first decade, suggesting trillion-dollar potential.
Key drivers include the return of positive interest rates, the success of stablecoins, institutional pilots by firms like Franklin Templeton and BlackRock, improved blockchain scalability, and clearer regulatory frameworks in the U.S. and Asia.
Case Studies in Institutional Credibility
Institutional examples reinforce this momentum. Franklin Templeton’s OnChain U.S. Government Money Fund, launched in 2018, proved that regulated tokenized funds could operate across multiple blockchains. BlackRock’s 2024 BUIDL fund on Ethereum attracted half a billion dollars within months, while Fidelity, WisdomTree, and Janus Henderson have since introduced tokenized Treasury products. Ratings agencies such as S&P and Moody’s are now assigning investment-grade classifications to some tokenized funds, further boosting credibility.
Outlook for Tokenized Assets
According to Libeara, institutional credibility marks a turning point for tokenized funds. With programmable features, real-time settlement, and growing regulatory clarity, tokenized assets are positioned to follow and potentially surpass the growth path of ETFs. As adoption accelerates, tokenization is increasingly viewed as both technically feasible and commercially attractive, signaling a transformative shift in global capital markets.
