Tokenization Hits Tipping Point as Regulatory Clarity and Blockchain Adoption Accelerate
The tipping point for tokenization has been reached, driven by a combination of factors including regulatory clarity, widespread momentum among institutional infrastructure providers, technological advances, and large-scale innovation from traditional payment firms.
Regulatory advances have improved the climate for tokenization in countries such as the United States, Europe, and Asia. For example, the EU's MiCA regulation established a bloc-wide framework for crypto-asset issuers and service providers in 2023, while Singapore's Project Guardian tested institutional DeFi on public blockchains since 2022.
The Depository Trust Company (DTC) is creating tokenized versions of US securities that they custody, with plans to be production-ready in 2026. The NYSE announced plans to develop a tokenized securities platform for 24/7 trading and onchain settlement, while NASDAQ received SEC approval to enable trading of certain tokenized securities.
The speed and scale of change are evident in the growth of stablecoins, which processed US$46 trillion of transactions onchain in 2025 compared to Visa's annualized US$7 billion. Traditional payment firms such as Visa and J.P. Morgan are integrating stablecoins into their systems, with Visa offering a Proactive Payments service.