Page 48 - CMA Journal (Jan-Feb 2026)

Focus Section

Figure 2: Es mated Growth in Tokeniza on Per Asset Class (in USD trillion)

Source: fintechnews.ch

contributors to this growth include stablecoins, deposits, Global Tokenization Adoption
treasury instruments, equities, real estate, and alternative
investments, reflecting broader institutional adoption 1) USA: Market Leader
and evolving regulatory frameworks supporting
blockchain-based financial infrastructure. U.S. is a major player in asset tokenization, accounting for
34.8% of cryptocurrency products launched in 2023.
This trend signals a structural shift toward digitally native Historically, industry growth was constrained by
capital markets, where blockchain infrastructure regulatory hurdles, but approval of Bitcoin ETF in early
increasingly complements and enhances traditional 2024 marked a key breakthrough. Legislative efforts, such
financial institutions. as Lummis-Gillibrand Stablecoin Bill, aim to provide clear

Tokenization in Capital Markets: Benefits vs. Risks
Benefits of Tokenization Challenges and Risks

Increased Liquidity: Unlocks liquidity for illiquid Regulatory Uncertainty: Ambiguous rules and potential
assets through fractional ownership, lowers investor misunderstandings may inhibit issuance and
investment thresholds, and expands trading trading; tokenized instruments may not provide full
activity. shareholder rights.

Broader Investor Access: Enables small and retail Liquidity Fragmentation: Assets spread across multiple
investors to participate in equities, bonds, and platforms and blockchains may reduce overall liquidity.
other assets, supporting financial inclusion.

Faster Settlement: Blockchain shortens Infrastructure Risks: Technology and custody systems
settlement times, reduces counterparty risk, and must be secure to prevent hacks, smart contract failures,
improves capital turnover and market resilience. and custodial errors.

Transparency & Compliance: Immutable records Legal & Operational Challenges: Integrating tokenized
enhance transparency; smart contracts automate assets with existing legal frameworks and cross-border
KYC/AML compliance, reducing errors and friction. operations can be complex.

46 ICMA’s Chartered Management Accountant, Jan-Feb 2026