BlockBeats report: On May 13, major global traditional financial institutions are increasingly entering the market for on-chain tokenized financial products, with the global market size for tokenized real-world assets (RWA) surpassing $30 billion. The industry is transitioning from its early experimental phase toward building institutional-grade infrastructure, interoperability, and compliant on-chain financial systems. Recent developments in the on-chain tokenization market continue to accelerate:
BlackRock submitted a new tokenized fund structure application to the U.S. SEC yesterday, once again selecting Securitize to provide on-chain infrastructure support. The new architecture integrates on-chain share ownership records with a regulated transfer agent and investor access system, bridging on-chain operations with traditional financial compliance frameworks. Securitize stated that its subsidiary, Securitize Transfer Agent, LLC, will maintain the official ownership records of fund shares on the public blockchain, meaning on-chain holdings data will be directly integrated into the regulated fund registry. This marks another step toward institutional-scale operation of regulated on-chain capital markets and is viewed as BlackRock’s further expansion following the success of BUIDL. BUIDL, BlackRock’s first tokenized fund launched in 2024 in collaboration with Securitize, has grown to approximately $2.3 billion in assets and has become one of the leading cases of institutional adoption of tokenized finance.
Franklin Templeton has also officially partnered with Payward, the parent company of the crypto exchange Kraken, to jointly explore on-chain tokenization opportunities for traditional financial products. The collaboration will cover tokenized equities, compliant custody, actively managed yield products, and institutional-grade crypto liquidity through Kraken’s OTC and Prime services. Both parties will focus on developing on-chain versions of Franklin Templeton’s financial products, including yield offerings for institutional clients, with potential future expansion to broader Kraken user bases. Kraken previously launched its tokenized equity product, xStocks, which has generated over $30 billion in cumulative trading volume since its launch last year. Meanwhile, Franklin Templeton has already issued multiple crypto ETFs and launched the tokenized money market fund BENJI, and is currently collaborating with Ondo Finance to develop on-chain financial products.
JPMorgan also plans to launch its second tokenized money market fund, JLTXX. On May 12, it filed documentation for the JPMorgan OnChain Liquidity-Token Money Market Fund (ticker: JLTXX), which will issue digital tokens on the Ethereum blockchain, with underlying assets consisting of U.S. Treasuries and repurchase agreements.