Asset Tokenization in Financial Markets 2025

Contents34 3.4 Asset management Funds Two primary fund structures are relevant to tokenization: on-chain funds, which tokenize conventional assets, and off-chain funds, such as ETFs, that invest in programmable ledger-native assets. On-chain funds On-chain funds represent traditional assets as digital tokens on a programmable ledger, facilitating broader investor access on new digital channels and direct trading without central clearing parties. This approach is intended to reduce operational costs and broaden investor access. On-chain funds today are backed by off-chain reference assets or tokenized versions of traditional securities. Estimates indicate that tokenized treasuries have grown from $104 million to $5 billion in market capitalization since 2023.82 Examples such as Franklin Templeton’s Benji and Ondo Finance’s USDY have succeeded in bringing off-chain treasuries and other high-quality liquid assets (HQLA) on-chain.Tokenized assets Source: RWA.xyz (2025)FIGURE 13 Tokenized US Treasuries by product BlackRock USD Digital Liquidity Fund (BUIDL) Ondo US Dollar Yield (USDY) WisdomTree Gov. Money Market Fund (WTGXX) Hashnote Short Duration Yield Coin (USYC) Ondo Short Term US Gov Bond (OUSG) OpenEden (TBILL) Franklin Templeton Gov Money Fund (BENJI) Superstate Asset Trust (USTB) Others$2.0B $1.8B $1.6B $1.4B $1.2B $1.0B $0.8B $0.6B $0.4B $0.2B $0M Jan 24 Feb 24 Mar 24 Apr 24 May 24 Jun 24 Jul 24 Aug 24 Sep 24 Oct 24 Dec 24 Jan 25 Mar 25 Feb 25 Nov 24