Tokenization Could Reshape Global Finance, Ark Invest Says

Source: Coindoo Original Title: Tokenization Could Reshape Global Finance, Ark Invest Says Original Link: Ark Invest is placing a massive long-term bet on tokenization, arguing that the shift of traditional finance onto blockchains is still in its earliest phase and could accelerate sharply once regulation and infrastructure fall into place.

In its latest “Big Ideas 2026” outlook, the firm led by Cathie Wood suggests tokenized real-world assets could grow from today’s niche market into an industry worth more than $11 trillion by the end of the decade.

Key Takeaways

• Ark Invest sees tokenization as a major long-term growth trend for global finance.
• Regulatory clarity and institutional infrastructure are key to wider adoption.
• Large exchanges and banks are already moving traditional assets onchain.

That would mark an extraordinary expansion from the roughly $20 billion currently sitting onchain, implying that tokenization remains far from mainstream adoption.

Why Ark Sees Tokenization As A Breakthrough Trend

According to Ark Invest, tokenization is less about crypto speculation and more about modernizing financial plumbing. By representing assets digitally on blockchains, firms can cut settlement times, reduce operational costs, unlock fractional ownership, and enable markets that trade continuously rather than during fixed exchange hours.

Ark argues that these benefits will only scale once two conditions are met: clearer rules for institutions and robust, bank-grade infrastructure. With both starting to emerge, the firm believes tokenization is nearing a transition from experimentation to real deployment across global markets.

Wall Street Begins To Move Onchain

Recent developments suggest large financial players are already preparing for that shift. The New York Stock Exchange has announced plans for a blockchain-based venue designed to support 24/7 trading of tokenized equities and ETFs, subject to regulatory approval. Meanwhile, State Street, one of the world’s largest custody banks, is rolling out a digital-asset platform covering tokenized deposits, money-market funds, and stablecoin-linked products.

In Europe, the London Stock Exchange Group has launched a Digital Settlement House aimed at bridging traditional payments with blockchain settlement, targeting near-instant clearing across both systems. These moves signal that tokenization is no longer confined to pilots but is increasingly being built into core market infrastructure.

From Treasurys To Stocks And Deposits

Ark notes that today’s tokenized market is heavily skewed toward sovereign debt, especially U.S. Treasurys. Over time, however, the firm expects the mix to change. Bank deposits and public equities are likely to take a growing share as institutions expand beyond limited trials and begin issuing familiar assets directly onchain.

Even at $11 trillion, Ark points out that tokenized assets would still represent only a small fraction of global financial wealth. That gap is precisely what makes the opportunity compelling: most value remains off-chain, leaving room for years of incremental adoption as traditional markets slowly integrate blockchain rails.

Big Forecasts From Across Finance

Ark’s outlook is far from isolated. TD Cowen has floated scenarios where onchain assets reach tens of trillions of dollars, while Citi sees multi-trillion-dollar growth split between tokenized securities and digital currencies issued by central banks. Consulting firms such as the Boston Consulting Group and McKinsey also expect tokenization to reach into the trillions, though with varying timelines and asset mixes.

Some banks, including Standard Chartered, believe most issuance will concentrate on public blockchains such as Ethereum, reflecting a preference for established networks with deep liquidity and developer ecosystems.

Taken together, these projections paint a consistent picture. Tokenization is still small, but momentum is building. For Ark Invest, the key takeaway is not the exact dollar figure in 2030, but the direction of travel: traditional finance is steadily moving onchain, and the largest growth phase may still be ahead.