Binance founder Changpeng "CZ" Zhao revealed at the World Economic Forum that he is in active discussions with a dozen governments regarding the tokenization of their real-world assets. He highlighted the potential for governments to raise funds and manage projects more efficiently by converting assets like bonds and real estate into digital tokens on a blockchain. This process, CZ argued, could increase market liquidity and bring greater transparency to public finances through immutable, public ledger records.
This vision is echoed and quantified in a major new forecast from Ark Invest. In its "Big Ideas 2026" report, the firm led by Cathie Wood projects that tokenized real-world assets could grow from a current niche of roughly $20 billion into an industry worth more than $11 trillion by the end of the decade. Ark Invest frames tokenization not as a tool for crypto speculation, but as a breakthrough trend for modernizing financial infrastructure, offering benefits like reduced settlement times, lower operational costs, and enabling fractional ownership and 24/7 trading.
The Boston Consulting Group also supports this multi-trillion-dollar outlook, estimating tokenization could unlock up to $10 trillion in currently illiquid assets. The convergence of these forecasts underscores a growing consensus on the scale of the opportunity.
Signs of this shift are already materializing within traditional finance. The New York Stock Exchange has announced plans for a blockchain-based trading venue for tokenized equities and ETFs. Custody bank State Street is launching a digital-asset platform for tokenized deposits and money-market funds, while the London Stock Exchange Group has established a Digital Settlement House to bridge traditional and blockchain-based settlements.
Despite the bullish outlook, significant hurdles remain. Ark Invest identifies regulatory clarity and robust, bank-grade infrastructure as critical prerequisites for mass adoption. Online commentators and experts have echoed concerns about the regulatory landscape, legal frameworks, and the risks to retail investors if rules fail to keep pace with the technology. CZ acknowledged that implementing tokenized assets involves more than just technology, requiring careful navigation of legal and political issues.
The reports suggest a clear trajectory: while today's tokenized market is dominated by U.S. Treasurys, the asset mix is expected to expand to include bank deposits, public equities, and government bonds. Ark Invest notes that even at $11 trillion, tokenized assets would represent only a fraction of global financial wealth, indicating a long runway for growth as traditional finance integrates blockchain technology.
