Tokenized Asset Market Lags Behind in Blockchain Adoption

The $321 billion market for tokenized real-world assets is expanding rapidly, but a recent report by Pantera Capital suggests that the industry still has a long way to go in terms of embracing blockchain infrastructure.

According to the report, most tokenized assets rely on centralized controls and offchain settlement systems rather than automated blockchain infrastructure. This is despite the growth of institutional interest in tokenized assets, with new product launches and partnerships between traditional financial institutions and blockchain networks on the rise.

The report found that only 2.7% of assets have reached the 'native' category, which features continuous settlement, composability, and automated onchain operations. In contrast, 77.6% of assets remain in the 'wrapper' stage, where blockchain is used mainly as a digital shell for traditional financial products.

Stablecoins continue to dominate the market, accounting for over $293 billion of tracked value. However, the report found that most other tokenized assets struggle to deliver practical decentralized finance utility, with only 10.6% showing meaningful DeFi composability.