Tokenized ETFs Soar to New Heights with $2 Billion Market Cap

The tokenized ETF market is experiencing rapid growth, according to on-chain data. Reserve accounts hold 44.3% of all tokenized ETF tokens, while the three largest issuers account for 79.6% of unique holders.

The total count of unique tokenized ETF holders reached a record 44,400 as of May 20, 2026, representing an increase of approximately 11,803% from a baseline of around 373 wallets.

Tokenized ETFs are on-chain representations of traditional exchange-traded funds. They offer benefits such as same-day settlement, DeFi composability, and fractional ownership, which traditional ETFs cannot replicate.

The market cap for tokenized equities has surpassed $2 billion, with Ondo Finance holding a 42% market share. BlackRock's BUIDL fund and Franklin Templeton's on-chain money market fund represent the institutional tier of the market.