Grayscale Research has identified six prominent blockchain protocols that are most likely to benefit from the asset Tokenize trend.
According to this asset management firm, the Tokenize asset market has grown by 217% year-on-year. However, this market currently accounts for only about 0.01% of the total value of global stock and bond markets, indicating enormous potential for future growth.
Why Grayscale XEM Tokenize as a great opportunity
The total value of Tokenize assets currently stands at approximately $30 billion, a very small figure compared to the global stock and bond market worth around $300 trillion. Tokenize assets are primarily US government bonds, accounting for about $15 billion, followed by commodities at $5 billion. Smaller categories include private credit, investment funds, and equities.
In a recent report, Zach Pandl, Head of Research, and Will Ogden Moore identified this as a gap that needs to be filled in the digital asset space.
"Over time, we believe that the majority of assets worth approximately $300 trillion – along with other asset classes such as real estate – will migrate to the blockchain," the report stated.
Tokenize assets versus the Tokenize market. Source: GrayscaleFollow us on X to stay up-to-date with the latest news.
Canton leads in the short term, Ethereum and Solana are ahead in the long term.
The report suggests that the Tokenize trend will dramatically change the Capital market as more and more assets and transactions move onto blockchains. This is just the beginning, and it will create significant value for the blockchains supporting this transition.
"We believe that the protocols best positioned to benefit from the Tokenize trend include Ethereum, Solana, Canton, Avalanche, BNB Chain, and Chainlink," the experts stated.
The report highlights Canton as the most prominent. According to data from RWA.xyz , this network accounts for 93.8% of the total real-world asset value represented on the blockchain and holds over $390 billion in Tokenize assets – the largest Capital base in the sector to date.
Grayscale Research suggests that institutional-oriented networks like Canton will continue to dominate in the short term. Unlike public blockchains, these networks are designed to closely resemble the workings of traditional finance, making them easier for investors and intermediaries to become familiar with. Canton also inherently guarantees privacy, a crucial element for most institutional applications .
Ethereum is the next name on the list, accounting for over 54% of the Tokenize real-world asset market share distributed across blockchains. Currently, Ethereum stores approximately $16 billion in Tokenize assets and has a total value locked in the Decentralized Finance (DeFi) sector of around $50 billion.
According to BeInCrypto's expert panel, Ethereum is also considered a platform that benefits greatly from Capital flows from traditional finance (TradFi).
“I think Ethereum will prevail in the next few years as TradFi starts to get involved. As banks and other institutions build on blockchain platforms, most of that will be on Ethereum in the next few years,” said Geoff Kendrick (Standard Chartered).
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Solana ranks second with over $2 billion in Tokenize assets. Additionally, this blockchain boasts a processing speed of over 1,000 transactions per second.
“Ethereum possesses the strongest ecosystem, leading in market Capital , developer activity, and number of applications,” the report states. “Solana currently lags behind Ethereum in Tokenize assets on the blockchain, but offers faster transactions and lower fees. This advantage makes Solana more accessible to retail investors, expands its distribution, and is particularly suitable for goals such as online stock trading.”
Meanwhile, Grayscale views Chainlink as a prominent opportunity, acting as a "tool" in the Tokenize trend, thanks to its provision of crucial intermediary infrastructure at every stage of the Tokenize asset lifecycle.The report also mentions Avalanche and BNB Chain as additional beneficiaries of this trend.
