How tokenized assets could become a $400 billion market in 2026

Core Insights - Stablecoins emerged as a significant product in the crypto space in 2025, with the industry now focusing on tokenizing various assets for broader market integration in 2026 [1] - The tokenized asset market experienced substantial growth, nearly quadrupling to almost $20 billion by the end of 2025, indicating a shift from niche experimentation to mainstream adoption [2] - Legal clarity, interoperability, and shared identity frameworks are essential for the successful scaling of tokenized markets, preventing fragmentation [3] Market Projections - Tokenized assets are projected to exceed $400 billion by the end of 2026, a significant increase from $36 billion today, driven by user demand and capital flows [4] - The transition towards tokenization is characterized by a fundamental restructuring of value transfer, moving beyond speculation [4] Investment Dynamics - As cash becomes tokenized through stablecoins, there is an expectation for these funds to seek investment opportunities, bridging digital money with digital capital markets [5] - The foundational work required for scaling tokenized markets includes establishing legal clarity and interoperability between different blockchain networks [5] Institutional Adoption - 2026 is anticipated to mark a shift from pilot projects to actual implementation of tokenization by traditional financial institutions, as indicated by industry leaders [6] - Tokenization is becoming a mainstream tool for capital raising, with significant efficiency gains and broader access that cannot be overlooked [7] - Emerging markets are expected to lead in tokenization, allowing local issuers to bypass outdated infrastructure and provide global investors with access to new capital markets at reduced costs [7]