Tokenized Funds Reach $9B as Traditional Finance Embraces Blockchain
A new era of hybrid finance emerges as institutional players move on-chain.
1Tokenized Funds Boom
According to CoinShares and Token Terminal, tokenized funds reached $9.0 billion in assets under management in Q1 2026, marking a 181% year-over-year surge. Traditional asset managers and crypto-native firms are expanding their on-chain offerings. Ethereum hosts approximately 60% of the tokenized fund market, with BlackRock and Circle leading the charge.
2Hybrid Finance Takes Shape
Tokenized funds are among the fastest-growing segments in Hybrid Finance (HyFi), blending traditional Wall Street products with blockchain infrastructure. Demand for low-risk, yield-generating products backed by short-duration US Treasuries has fueled this growth. Major players like Franklin Templeton are actively participating, signaling institutional confidence in on-chain assets.
3Stablecoins: The Backbone
Stablecoins remain foundational to HyFi, serving as on-chain equivalents of fiat for trading and collateral. The market cap hit $297.6 billion in Q1, up 37.2% YoY. Tether, Circle, and Paxos dominate issuance, with Ethereum settling 60% of transactions. Alternative networks like Solana and Tron are also gaining traction in stablecoin activity.
4On-Chain Business Models
Blockchain-native companies generated $587.9M in revenue in Q1, primarily from trading and lending. Hyperliquid outperformed other platforms by combining exchange and settlement layers. Stablecoin-related businesses contributed significantly to this revenue, highlighting the synergy between traditional finance and decentralized infrastructure.
5RWA Perpetuals Thrive
Real-world asset (RWA) perpetual futures have defied the broader crypto derivatives slump. TradeXYZ, an RWA-focused platform on Hyperliquid, saw trading volume grow 20x since launch. Commodities like oil, major equity indices (S&P 500, Nasdaq-100), and tech stocks drive demand, showcasing institutional interest in on-chain exposure to traditional assets.
6Market Concentration
The tokenized fund market remains concentrated among giants like BlackRock and crypto-native issuers such as Circle. Ethereum maintains dominance as the settlement layer, while L2s like Arbitrum and Base expand. Nearly 50% of tokenized issuance occurs on Ethereum, reflecting its entrenched position in institutional blockchain adoption.
7Diversified Revenue Streams
On-chain platforms are monetizing through trading, lending, and infrastructure services. Hyperliquid uniquely captures value as both an application and settlement layer. Stablecoin-based businesses account for a substantial share of revenue, demonstrating the viability of hybrid financial models that bridge TradFi and DeFi.
82026: The Hybrid Finance Inflection
CoinShares declares 2026 the year HyFi transitions from narrative to measurable reality. Tokenized funds, stablecoins, and revenue-generating platforms are creating a seamless bridge between traditional and crypto markets. Institutional participation is accelerating, setting the stage for a redefined financial ecosystem where blockchain becomes indispensable.
Original article: DailyCoin — Tokenize Fonlar 9 Milyar Dolara Ulaştı