Pantera Capital: With JPMorgan, HSBC, and Fidelity entering the on-chain sector, the tokenization market has reached $33.2 billion

Venture capital firm Pantera Capital has released its latest State of Tokenization report, providing a comprehensive analysis of a market that has grown to around $33.2 billion, covering 671 tracked assets. 

The September 2026 edition combines quantitative benchmarks up to June 30 and selected developments from Q3. Its core finding: tokenization is undergoing a structural shift. Issuing tokens on-chain has become straightforward, while building compliant and liquid secondary markets is now the industry's main frontier.

Institutional participation rose significantly in Q2. According to Pantera data, numerous large financial institutions— including JPMorgan, HSBC, and Fidelity— launched on-chain products, with growth now also expanding beyond just stablecoins. The value of tokenized non-stablecoin assets grew 13.3% between Q1 and Q2, while stablecoins reached a market cap of $29.55 billion at the end of Q2, making up 89.1% of total value. Tokenized government bonds increased by $350 million to reach $1.65 billion, while private credit rose by $1 billion to $5.1 billion.

BlackRock's tokenized Treasury fund BUIDL demonstrates how institutional products can perform economic functions on-chain. In June alone, wallet-to-wallet transfers for the fund hit $44.1 billion, ranking it first among comparable funds. The fund currently sees daily redemptions of up to $1 billion and is now accepted as collateral. This indicates that tokenized funds are moving from proof-of-concept to operational infrastructure.

Consumer Rail and Collateral Markets Enter Next Phase of Testing

On the distribution side, Robinhood Chain officially launched on July 1, providing an early test of consumer demand. The tracked tokenized value grew nearly fivefold in its first month, with weekly RWA trading volume rising from $5 million in the first week to around $88.8 billion by the end of August, increasing its share of decentralized exchange (DEX) trading volume from 0.1% to 12.9%. However, Pantera notes that early wallet balances remain concentrated, with small transfers dominating trading activity.

Collateral markets are also maturing. The report found that about 45% of private credit's matched value is used as follows: DeFi total value locked (TVL) and lending protocols like Morpho are unlocking financing for a growing volume of tokenized RWA collateral trades, with net supplied capital rebounding to $18.7 billion by quarter's end.

Regulatory questions remain unresolved but are no longer the main barrier. On September 15, the Senate failed to advance the CLARITY Act, leaving the outlook for broader US market structure legislation uncertain. However, the US Securities and Exchange Commission (SEC) granted five-year conditional exemptions to certain tokenized equity venues and liquidity providers, allowing the market to continue developing under existing rules. Pantera's advice to institutions is pragmatic: focus on building infrastructure within the current framework—qualified market makers, compliant trading venues, and reliable redemption mechanisms—while assessing value in light of the markets each product serves.