Ethereum controls 71.9 percent of tokenized fund market

Ethereum has emerged as a dominant force in the tokenized fund market. Latest data reveals that 71.9 percent of all on-chain tokenized fund assets are held on the Ethereum network. This clear majority has positioned Ethereum as the go-to platform for moving traditional financial assets onto the blockchain.

Global finance giants accelerate tokenization

Interest in fund tokenization continues to grow as major worldwide financial institutions join the trend. Firms such as Franklin Templeton, BlackRock, and JPMorgan have been pivotal in integrating blockchain into traditional finance. Franklin Templeton set the stage in 2021 with its BENJI fund, marking a key milestone in institutional participation. BlackRock’s entrance with the BUIDL product in 2024 drove further momentum, drawing even more attention from established players. Building on this, JPMorgan announced its MONY product for 2025, showing that leading banks are embracing blockchain for fund settlement.

The fact that 71.9 percent of tokenized funds are managed on Ethereum has made the network a core pillar of the industry. The arrival of major financial organizations has rapidly accelerated blockchain’s integration with traditional finance.

Particularly noteworthy is BlackRock’s 2026 application for its BSTBL product, which sparked a further surge in interest around Ethereum’s tokenization movement. This single move triggered nearly $7 billion in transactions on the Ethereum network. As the world’s largest asset manager, BlackRock’s blockchain strategies have significant ripple effects throughout the market.

Glossary: Tokenization is the process of converting traditional financial assets (such as stocks, bonds, or fund shares) into digital assets on a blockchain. This enables transfers, ownership, and asset custody to be handled through blockchain infrastructure.

Competing blockchains vie for institutional adoption

While Ethereum maintains its stronghold in tokenized funds, the broader sector is unlikely to be dominated by a single blockchain. Some fund providers seek lower transaction fees, faster settlement options, and built-in compliance features, prompting competition from next-generation, layer-1 blockchains tailored for institutional needs. These alternative chains offer fixed transaction costs, sophisticated fund management tools, and regulatory-friendly designs aimed at financial market players.

Despite this, most fund providers still choose Ethereum for its deep liquidity, mature security, and rich suite of support services. The well-established Ethereum ecosystem, combined with its wide range of developer tools, makes integration easier for large financial actors. Transitioning away from Ethereum’s entrenched infrastructure and institutional ecosystem remains a challenging prospect for industry participants.

Experts note that while Ethereum’s infrastructure leads with deep liquidity and a wide array of tools for asset providers, funds seeking lower costs and faster processing are increasingly looking toward alternative layer-1 blockchains as potential solutions.

Market competition and future outlook

Institutional interest signals that the digitalization of real-world assets has progressed out of its early stage. However, factors such as transaction costs, regulatory compliance, and ease of integration will play a decisive role in the next phase. Although Ethereum currently holds the largest market share, most analysts agree that it’s premature to declare it the sole authority in the future of tokenized fund settlements.

At the same time, Ethereum’s first-mover advantage with smart contracts and proven technical reliability ensures that a broad base of fund providers, custodians, and investors continues to join its network.

In summary, Ethereum currently leads the tokenization market by a significant margin. Still, robust competition persists as evolving investor demands are expected to drive the emergence of new networks in the near future.