tl;dr
The tokenized asset market has reached a record $270 billion in assets under management, driven largely by institutional adoption and Ethereum's dominance as the preferred settlement layer. Ethereum hosts about 55% of tokenized assets, including stablecoins like USDT and USDC, and innovative funds s...
The market for tokenized assets has quietly reached a new milestone, with assets under management (AUM) soaring to an all-time high of approximately $270 billion. This surge underscores Ethereum’s growing role as the preferred settlement layer for stablecoins and institutional-grade tokenization.
Token Terminal reports that tokenized assets now span a broad range of categories, including currencies, commodities, treasuries, private credit, private equity, and venture capital. Institutional adoption is a significant driver behind this growth, as blockchain technology offers increased efficiency and accessibility. Ethereum, with its sophisticated smart contract ecosystem and widely adopted token standards, hosts roughly 55% of all tokenized asset AUM. Popular tokens such as USDT (Ethereum), USDC (Ethereum), and BlackRock’s BUIDL fund, built on the ERC-20 framework, represent some of the largest pools of this value. Specialized standards like ERC-3643 further enable tokenization of real-world assets such as real estate and fine art.
With $270 billion already tokenized, the market is poised for continued expansion that could eventually reach into the trillions. Ethereum’s role as the backbone of tokenized finance is becoming increasingly cemented by these trends.
Financial giants are quietly backing Ethereum’s rise. PayPal’s PYUSD stablecoin, now exceeding a $1 billion market cap supply and issued entirely on Ethereum, demonstrates growing institutional trust in Ethereum’s rails for liquidity, security, and scalability. This milestone signals that major financial players are standardizing on Ethereum for settlement and cross-border finance.
Traditional asset managers are also embracing Ethereum’s tokenization capabilities. BlackRock’s tokenized money market fund BUIDL exemplifies how conventional financial instruments can be issued and managed fully on-chain, blending traditional finance seamlessly with blockchain technology.
Ethereum’s dominance is reinforced by its network effects and vast developer ecosystem. The ERC-20 token standard acts as a universal language for digital assets, ensuring smooth compatibility with wallets, exchanges, and decentralized finance (DeFi) protocols alike. Moreover, network upgrades such as the transition to Proof-of-Stake (PoS) and the introduction of rollups have improved Ethereum’s security, liquidity, and scalability—factors that build institutional confidence.
Ethereum’s versatility allows it to serve a spectrum of users: retail participants utilize stablecoins like USDT and USDC for payments and DeFi applications, while tokenized treasuries and credit instruments attract institutions seeking higher yield and operational efficiency.
Despite this optimistic outlook, some caution is warranted. Ethereum faces significant selling pressure and while 98% of its supply remains profitable, warning signs indicate potential volatility on the horizon. Traders and investors should stay vigilant as the market evolves.