Tokenized Funds Hit $9 Billion as Traditional Finance Moves On-Chain

Tokenized funds have reached $9 billion in assets under management, up 181% year-over-year, according to CoinShares and Token Terminal. This growth underscores a shift towards Hybrid Finance, where traditional asset managers and crypto-native firms are expanding into on-chain markets.

The demand for low-risk, yield-generating products backed by short-duration US Treasury instruments has driven this growth. Major financial institutions and crypto-native issuers, including BlackRock, Franklin Templeton, Circle, and Ondo, have nearly 50% of issuance taking place on Ethereum.

Ethereum remains the dominant settlement network, hosting approximately 60% of all stablecoin supply, while other ecosystems continue to expand their activity. On-chain businesses are emerging as blockchain-native financial companies that generate revenue directly from trading, lending, and collateral activity.