Tokenization Tipping Point Reached as Regulators, Tech, and Traditional Firms Align

The tipping point for tokenization has been reached, driven by a combination of factors that are transforming the financial industry. Franklin Templeton and Animoca Brands have entered into a strategic collaboration to explore and facilitate institutional adoption of tokenized real-world assets. This partnership is a significant step towards mainstream adoption of tokenization, which is expected to revolutionize the way assets are created, traded, and managed.

The increasing demand for tokenization is being driven by several key factors. Firstly, regulatory clarity is improving, with many countries establishing clear guidelines for the use of tokenized assets. For example, the EU's MiCA regulation has established a framework for the issuance and trading of digital assets, while Singapore's Project Guardian has been testing institutional defi on public blockchains.

Secondly, technological advances are making it possible to process large volumes of transactions quickly and efficiently. For example, Solana can process 65,000 transactions per second, while stablecoins have processed US$46 trillion of transactions onchain in 2025.

Thirdly, large-scale innovation from traditional payment firms is integrating stablecoins into the traditional payment system. For example, Visa's stablecoin settlement run rate reached an annualized US$7 billion in April 2026.