The $100 Trillion Question – How Fast Will Finance Move Onchain?

Analysts at TD Cowen believe that assets recorded on blockchains – currently valued at about $4.6 trillion – could soar beyond $100 trillion within five years, as traditional finance converges with digital infrastructure at record speed.

Tokenization Moves from Theory to Reality

What began as a buzzword has now become a tangible movement. Financial giants such as JPMorgan, Bank of America, Euroclear, and Tradeweb are already experimenting with blockchain-based settlement systems. The motivation is clear: tokenized assets reduce transaction costs, eliminate delays, and allow cross-border settlements to happen in seconds rather than days.

According to TD Cowen, the surge in onchain capital reflects more than just technological optimism – it’s a sign that banks and governments are aligning behind shared digital standards. Tokenized instruments, from Treasuries to real estate, can now operate continuously on-chain, paving the way for programmable finance that merges seamlessly with traditional markets.

Policy Momentum and Institutional Demand

Regulators, once hesitant, are now shaping frameworks that encourage tokenization. The U.K. is set to appoint a “digital markets champion” to coordinate blockchain integration in wholesale finance, while transatlantic banks are reportedly developing a stablecoin-like instrument to act as the cash leg for digital settlements.

The demand side is equally robust. Surveys by State Street reveal that institutional investors expect their digital asset exposure to double in the next three years, with many forecasting that tokenized holdings could represent up to a quarter of their portfolios by 2030. Robinhood’s leadership has also suggested that tokenization frameworks will underpin most global markets before the decade ends.

TD Cowen’s analysts argue that these converging forces – regulatory clarity, enterprise adoption, and shared standards – are setting the stage for a financial inflection point. Once institutions move from pilot programs to live production, the era of tokenized capital markets could begin in earnest, reshaping how trillions of dollars flow across the global economy.