Experts from Bernstein cite 2026 as the beginning of a "tokenization supercycle" which could fundamentally change the interaction between crypto-currencies and traditional finance. This is not merely another speculative boom; rather, it represents institutional investor's recognition that there exist solutions to capital market inefficiencies via blockchain technology. Experts believe that the value of tokenized real-world assets will increase from approximately $37 billion in 2025 to approximately $80 billion in 2026. The transition of crypto-currencies from being perceived as a means of making money, to being seen as a means for creating tangible products, occurs as of now; this too can be corroborated by numerous statistical analyses."
They are not "testing the waters" for private fund asset classes, which are typically not a major focus for institutional investors due to the large number of intermediaries involved and the need for T+2 settlement. However, with a current market value of about $8.7 billion, on-chain U.S. Treasury Securities (the largest asset index in tokenised real-world assets) make up 45% of total tokenised real-world assets. The tokenization of assets at the institutional level is occurring as institutions are now able to settle asset transactions instantly, write programmatic rules and hold assets that have previously been subject to substantial minimum holds. More institutional asset managers see tokenisation as a viable, workable and practical part of the global financial system.
Stablecoins are the starting point for cryptocurrencies to become more mainstream in finance; Bernstein estimates that the total volume of stablecoins will grow to $420 billion (56% CAGR) as a result of growth in cross-border transactions, B2B settlement and the adoption of stablecoins by large fintech companies (such as Block, Revolut and PayPal). The primary use of stablecoins has evolved away from being used as a "trader's currency" (i.e., to hold capital between trades) to now being a primary means of payment in the "real" world and the growth of stablecoins is being driven by the growth of tokenized real world assets.
The passage of the GENIUS Act in July 2025, which established a federal framework to regulate stablecoins, finally provided the regulatory clarity required for traditional financial institutions to invest in this space. The U.S. Securities and Exchange Commission (SEC) has started to take a more pro-crypto position that is in line with Republican ideology. This shift is significant because it addresses one of the significant barriers preventing traditional financial institutions from participating in the crypto ecosystem. As the regulatory environment has shifted from a hostile stance towards one of clarity, institutional capital has quickly flowed into the sector.
The solution to inefficiency in financial markets caused by multiple intermediaries is the process of tokenization. Traditional costly intermediaries come with significant counterparty risk, in addition to the inconvenience of delays in processing time. By creating a digital representation (token) of an asset, transactions can be confirmed and completed in minutes, rather than days. Furthermore, smart contract technology facilitates auto-execution of transactions by ensuring compliance with predefined rules. Tokenization furthermore allows for fractional ownership, enabling access to commercial real estate, private credit, and other types of infrastructure projects that had been limited to wealthy individuals.
According to the Boston Consulting Group's estimates, the tokenized asset market may reach $16 trillion by 2030, with some estimates projecting it may exceed $30 trillion as consumer demand increases. For context, the current total market capitalization of cryptocurrency is approximately $3.5 trillion. Therefore, the current value of tokenized assets may greatly eclipse that of cryptocurrencies in the near future. The predictive capability of Blockchain will come from building a solid foundation of infrastructure rather than by providing an inaccurate forecast of the future.
Tokenization proxies are companies that provide solutions for tokenizing capital markets, and among them are Robinhood, Coinbase, Figure, and Circle at the top of Bernstein's list. These companies will provide custodial solutions, compliance frameworks, trading venues, and on-chain settlement networks for tokenized capital markets, and all these things have value for traders. Market makers and exchanges stand to benefit from a massive increase in revenue via the prediction market volume, which is projected to rise by 100% to be worth $70 billion in 2026. Companies like Polymarket and Kalshi are establishing themselves as legitimate companies with the necessary regulatory oversight and are therefore poised to profit from the prediction market revenue stream, as they can now offer a new method of generating income from the blockchain.
The Bedford Group has forecasted Bitcoin price of $150,000 in 2026 and $200,000 in 2027 at the market peak. However, the price of Bitcoin is not the most important part of this report; it is the infrastructure that will be built by large financial institutions that will create stability regardless of market fluctuations. For example, JPMorgan processes billions of dollars' worth of blockchain-based repo transactions each day on its Onyx platform, Nasdaq has filed with the SEC to bring assets on-chain, and Standard Chartered's CEO, Bill Winters, has said that most transactions will eventually be conducted on the blockchain. This shows that tokenization is no longer an innovative or easy-to-understand technology; it has become an important part of how the world operates.
The tokenization super cycle represents the point at which cryptocurrency comes to fruition. The crypto industry has promised numerous times to disrupt the finance industry; however, most of those promises have not been fulfilled. Tokenization is unique because it delivers value to companies that use "real" currency to solve their business problems. In essence, tokenization is not designed to replace current methods of running financial institutions, but rather enhances them via blockchain technology. For example: Tokenization decreases the timeline from transaction initiation to final settlement, reduces the cost of regulatory compliance and expands access to more individuals.
Institutional acceptance of tokenization has reached the stage where it will be fully implemented in 2019, as evidenced by the universal acceptance of the current standards that have been established, the operational validity of the infrastructures created by such entities as Ripple, and the transfer of funds to tokenized assets. Should the growth rate in tokenization take place according to the projections outlined by Bernstein, their estimated value for the total amount of tokenized assets at year-end 2026 is already far below market value. The key takeaway for prospective investors is to understand that tokenization today is not in the distant future of cryptocurrency; rather, it will be right in front of them in 2026 and required for corporations to continue doing business.
Any organization that did not act during 2019, does so at a great risk and will find itself at a disadvantage in its ability to do business in 2026, unfortunately.
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