The market capitalization for tokenized assets has reached $339.5 billion, according to Token Terminal data covering 4,942 distinct tokenized assets issued across 316 entities and 47 blockchain networks.
The market now counts 280.3 million holders engaging with these tokenized products, with asset managers increasingly using on-chain rails for distribution and lifecycle management.
Tokenized equities alone account for over $2 billion in market cap. Ondo Finance leads the category with roughly 42 percent market share. Backed Finance and Dinari are other notable issuers in the space, with Securitize acting as a key service provider.
Commodity funds represent another significant segment. Through end-2024, these funds totaled approximately $1.1 billion, with gold-linked tokens comprising around 83 percent of that value. Issuers include Paxos Gold (PAXG), Tether Gold (XAUT), the Diamond Standard Fund and Libeara's tokenized gold fund, launched in Singapore in December 2024.
Compliance logic is typically encoded directly in the token's smart contract. ERC-3643 is the dominant standard for transfer restrictions, with ERC-1400 serving as an alternative. A transfer agent handles KYC and AML verification; once cleared, wallet addresses are added to an on-chain allow list that the smart contract enforces on every transfer, covering holder caps, jurisdiction filters and freeze functions.
Access to these tokenized funds varies by fund size. The largest funds carry the highest minimums, as institutional capital concentrates where verification requirements and investment thresholds exclude retail flow.
Tokenization lets managers tap new distribution channels via DLT while cutting costs across the lifecycle management of parent funds and sub-funds.
On-chain capital is rotating toward yield-bearing real-world assets. Tokenized Treasuries and credit products now compete directly with DeFi-native lending for stablecoin liquidity. With on-chain Treasury yields near 4.2 percent and DeFi lending rates often compressed below 3 percent, capital is migrating toward options that offer comparable returns with lower perceived risk.
