The tokenization sector has seen remarkable growth over the past year, especially with banks, crypto firms, and fintech companies looking to launch products in this space.
According to data compiled by Asset Tokenization, major financial institutions projected that this sector could reach at least a $2 trillion valuation by 2035. Consulting firm McKinsey forecasted that the tokenization market could reach $1.9 trillion by 2030 and $4 trillion by 2035.
On the higher end, Standard Chartered said the market value of tokenized assets could reach $30.1 trillion by 2034.
One could also say these bullish projections are helping to boost institutional interest in the growing sector.
A Look at Banks Already Entering the Tokenization Market
Banks have been discussing the development of tokenized forms of other types of assets for several years. They claim that this will help make the trade more efficient, faster, and cheaper.
Since the latter half of 2025, this concept has begun to take form as more and more institutions are launching this sector. For instance, in December 2025, JPMorgan (NYSE:JPM) launched its first tokenized money fund, allowing investors to hold tokens representing their shareholding in the fund.
The fund, called My OnChain Net Yield Fund, or “MONY,” was available to individuals with a minimum investment of $5 million and to institutions with a minimum investment of $25 million.