Tokenized funds hit new ATH of $14.4B particularly tokenized funds like money market funds, treasury-backed products, and institutional investment vehicles on blockchains.
These represent digital tokens backed by traditional assets (e.g., U.S. Treasuries, private credit, or fund shares), offering benefits like faster settlement, fractional ownership, and on-chain yield. Tokenized U.S. Treasuries and similar yield-bearing funds have seen massive adoption, with major players like BlackRock’s BUIDL fund exceeding $2B in AUM alone in some tracking periods.
Broader non-stablecoin RWAs including tokenized treasuries, private credit, commodities, institutional funds, etc. approached or exceeded ~$15B in late 2024/early 2025, with continued upward momentum into 2026. For context, tokenized treasuries alone hit multi-billion figures, and the overall RWA market excluding dominant stablecoins has grown significantly.
Analytics platforms like RWA.xyz track these on-chain assets in detail, showing categories like U.S. Treasuries, institutional funds, and private credit contributing to totals in the tens of billions when including related products. This surge is driven by: Institutional involvement from firms like BlackRock, Franklin Templeton, Fidelity, and others launching tokenized money market funds (MMFs) and treasury products.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab.
Regulatory progress and clearer frameworks encouraging adoption. Demand for on-chain liquidity, programmable finance, and yields in a digital-native way. Projections remain bullish: Analysts from McKinsey, BCG, and others see the tokenized asset market potentially reaching trillions by 2030, with tokenized funds as a key breakout category in 2026.
Tokenized funds reaching a new all-time high (ATH) of $14.4B refers to the surging market for tokenized real-world assets (RWAs) focused on yield-generating funds — especially tokenized money market funds, U.S. Treasury-backed products, institutional funds, and similar vehicles.
This milestone aligns with rapid growth in the broader non-stablecoin RWA sector, which has seen explosive adoption in late 2025 into early 2026.As of mid-to-late January 2026, platforms like RWA.xyz track on-chain tokenized RWAs excluding dominant stablecoins in the $19–36B range across categories, with tokenized U.S. Treasuries and institutional funds forming major portions.
The $14.4B figure may capture a specific subset like tokenized funds/institutional products or a snapshot during a recent surge, possibly driven by new launches, institutional inflows, or aggregated AUM across major issuers.
Major TradFi players like BlackRock’s BUIDL, Franklin Templeton’s BENJI/FOBXX, Fidelity, WisdomTree, Ondo, and others have scaled tokenized funds to billions in AUM. This bridges traditional finance and blockchain, bringing regulated, yield-bearing products on-chain. Institutions now use these for efficient cash management, collateral, and 24/7 settlement — reducing friction in global finance.
Bridging TradFi and DeFi
Tokenized funds offer crypto-native users like DeFi protocols, DAOs, treasuries stable, low-risk yield without exiting blockchain ecosystems. They enhance liquidity, enable fractional ownership, and automate distributions via smart contracts.
This convergence could make on-chain yields a standard “risk-free” benchmark, similar to how stablecoins became crypto’s cash layer. Clearer frameworks (e.g., U.S. stablecoin rules, MiCA in Europe, and pro-crypto policy shifts) have boosted confidence.
Tokenization solves illiquidity in assets like private credit or funds, enabling faster settlement (T+0 vs. T+2) and lower costs. This milestone signals maturation — RWAs are moving from pilots to production-scale infrastructure. Faster, cheaper, programmable finance could transform capital markets, with projections from McKinsey, Standard Chartered, and others eyeing trillions in tokenized assets by 2030.
Fractional access lowers barriers for retail/institutional investors to high-quality yields. Regulatory hurdles remain e.g., SEC compliance for U.S. users, chain fragmentation (pricing/liquidity gaps), and counterparty/ oracle risks. However, growth continues despite these.
Ethereum dominates ~60%+ share, but multi-chain expansion such as Arbitrum, Solana, others boosts accessibility. This $14.4B ATH underscores 2026 as a breakout year for tokenized funds as a core pillar of on-chain finance. It’s not just hype — it’s measurable capital flowing into blockchain-native versions of proven TradFi products, with massive upside as adoption scales.