According to Grayscale Research, Ethereum, Solana, Canton, Avalanche, $BNB Chain and Chainlink stand to benefit as tokenized assets expand. The company estimated tokenized assets at approximately $30 billion, an increase of 217% year over year.
Important points:
- Ethereum, Solana, Canton, Avalanche in grayscale, $BNB Chain and Chainlink are the main beneficiaries of the growth of tokenization.
- Tokenized assets reached nearly $30 billion, growing 217% year over year, led by U.S. Treasuries and commodities.
- Future implementations will increase blockchain fees, liquidity, and developers, with early lead institutions likely to expand the open network later.
Blockchain protocol by Grayscale name positions for tokenization growth
Grayscale Research has outlined several blockchain networks that it believes will be central to the tokenization market. In an April 29 analysis, the company presented these networks as the core infrastructure for a potential shift in capital markets, where assets are issued, transferred and settled on blockchain systems.
“We believe that the tokenization megatrend represents a huge potential investment opportunity…Over time, we believe that much of the approximately $300 trillion securities market will move on-chain, along with other types of assets such as real estate,” Grayscale wrote.
Although tokenized assets are still small compared to traditional markets, growth is accelerating. The analysis estimates that tokenized assets represent approximately $30 billion, or 0.01% of the global stock and bond market, compared to approximately $300 trillion for traditional securities. The market expanded 217% year over year, driven by approximately $15 billion in tokenized U.S. Treasuries and nearly $5 billion in commodities. Grayscale Research says:
“Protocols best suited to benefit from the tokenization megatrend include Ethereum, Solana, Canton, Avalanche, $BNB Chain and chain link. ”
Each protocol plays a different role within the tokenization stack. While Ethereum supports a large-scale decentralized financial environment, Solana focuses on transaction speed and cost reduction. Canton is designed for institutions with privacy features. Avalanche enables customizable blockchain deployments. $BNB The chain will benefit from distribution tied to Binance. Chainlink provides services such as data distribution across multiple networks and proof of reserves.
Tokenization could increase blockchain fees, liquidity, and developers
As tokenized assets expand, blockchain usage is likely to increase through issuance, trading, and transfer. This activity is likely to increase demand for block space and transaction fees on smart contract platforms. Networks with high activity are likely to attract more liquidity, developers, and capital over time. The market is also divided by architecture. Institution-centric networks prioritize privacy and permissions, which could encourage early adoption by financial institutions. Open networks provide transparency and broad access, enabling broader participation and application development. A hybrid approach combines elements of both, allowing for customization while remaining connected to the larger ecosystem.
Our analysis frames tokenization as a multi-phase process rather than the result of a single chain. Grayscale Research says:
“In our view, the potential for institutional-centric networks to capture early activity and open networks driving long-term upside potential will create value for the underlying blockchain tokens, including ETH, SOL, and CC.”
“Regardless of how this transformation unfolds, LINK appears well-positioned to provide consistent chain-agnostic exposure throughout the implementation phase,” the report adds.
While institution-centric platforms may lead early adopters, open networks are likely to expand their role as privacy solutions evolve. Chainlink is positioned to work across different systems through middleware services. Overall, the outlook shows that several blockchain networks will benefit as tokenization continues to develop across financial markets.
