A global digital wealth manager has confirmed the tokenisation of assets is developing rapidly and has transformed from a notion into structural change across capital markets around the world.
Financial services firm Crypto.com has observed the sector expanded by more than 430 per cent between January 2025 and April 2026, and total capitalisation rose from about US$5.8 billion to over US$30.8 billion during this time.
“This expansion is underpinned by improved regulatory settings and greater participation from traditional financial institutions,” Crypto.com international general manager Karl Mohan noted.
“The entry of major players such as BlackRock and Fidelity has helped validate tokenisation as a legitimate extension of existing financial markets, rather than a parallel system.
“As a result, tokenised products are increasingly being viewed as investable, institutional-grade offerings.”
Mohan pointed out while tokenised US Treasuries continue to represent the largest share of the market at around US$15.1 billion, growth is becoming diversified. To this end, he indicated asset-backed credit increased from roughly US$82 million to US$2.5 billion over the same period.
Further, he recognised tokenised commodities have also recorded strong performance, with market value increasing by more than 400 per cent.
“These tokenised assets offer near-instant settlement, improved transparency and more efficient transaction processes. These features reduce friction within traditional financial systems and make it easier for institutions to move capital,” he explained.
“As the market continues to mature, tokenisation has enormous potential to enhance existing financial systems rather than replace them.”
According to Mohan, traditional asset classes such as equities and money market funds are expected to increasingly become tokenised.
With regard to the Australian experience, he acknowledged adoption remains at an earlier stage, but momentum is building.
“More tokenised products are beginning to emerge locally and we expect this to accelerate significantly over the next 12 to 24 months as regulatory clarity improves and market infrastructure continues to develop,” he said.
“We expect to see traditional asset classes such as equities and money market funds increasingly becoming tokenised and the core drivers behind this growth are clear.”
“For Australia, the challenge and opportunity will be ensuring local markets can keep pace with global developments and fully participate in what is emerging as a major structural shift in finance,” he concluded.