Pantera’s State of Tokenization Report :: Q1 2026

From: Pantera Capital <invest@panteracapital.com>

Subject: Pantera’s State of Tokenization Report :: Q1 2026

Date: May 12, 2026 at 1:24:08 PM PDT

To: ali@droplinked.com

Reply-To: invest@panteracapital.com

Ali,

We consistently hear from the world’s leading banks, fintechs and asset managers that tokenization is their primary focus for the next five years. But how much of today’s market is truly native on-chain?

To answer that question, our research team published a tokenization report analyzing 593 tokenized assets across 11 asset classes representing approximately $320bn in tracked market value. Using a new framework we developed called the Tokenization Progress Index (TPI), we evaluated how far tokenized assets have actually progressed across issuance, settlement, and composability.

Here are a few findings that stood out:

The market has grown quickly, but most assets are still early. Nearly 78% of tokenized assets still depend heavily on traditional financial infrastructure behind the scenes.

Getting money in and out is still highly controlled. More than 91% of assets still rely on issuers or custodians to manage minting and redemption.

Some of the strongest real usage is happening in Private Credit. While stablecoins dominate overall market size, Private Credit currently has some of the highest on-chain activity and DeFi usage.

The next phase of tokenization will be defined by on-chain financial products that enable atomic settlement, 24/7 liquidity, smart-contract composability, and open issuance. We need infrastructure that is more transparent, privacy-preserving, and cheaper to produce. Today's wave of wrapped products has been essential groundwork, opening the distribution rails and bringing institutions on-chain. Natively on-chain finance is the next chapter we're all in on, and we need more builders and institutions to join us.

Please don’t hesitate to reach out with any questions or feedback. We’d be happy to discuss further.

Best,

The Pantera Team

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Certain information (including certain forward-looking statements and information) has been obtained from published sources and/or prepared by other parties, which in certain cases has not been updated through the date hereof. While such sources are believed to be reliable, neither Pantera and any general partner affiliated with Pantera or any of its respective directors, officers, employees, partners, members, shareholders, or their affiliates, or any other person, assumes any responsibility for the accuracy or completeness of such information.

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