Ethereum Emerges as Core Settlement Layer for Tokenized Finance with 61% Market Share

Highlights:

• Ethereum processes over $200 billion in tokenized assets as institutions move real financial products on-chain.
• Tokenized finance is growing fast as major asset managers launch funds and settle transactions on Ethereum.
• Competing blockchains support tokenized assets but still handle less value than Ethereum across global markets.

Ethereum now accounts for about 61% of all tokenized assets, based on Token Terminal data. The network settled roughly $206 billion in tokenized transactions over the past 12 months. This increase reflects a 40% rise compared to the previous year.

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🚨RWAS: ETHEREUM STILL THE KING OF TOKENIZATION

According to Token Terminal, an insane 61.4% of all tokenized assets are hosting on the @Ethereum blockchain.

More than $206 billion worth of RWAs currently use $ETH as their settlement layer, with RWAs on Ethereum up some 40%… pic.twitter.com/8O0blHJYR3

— BSCN (@BSCNews) March 31, 2026

Developers and financial firms use Ethereum smart contracts to issue tokenized funds, credit instruments, and real estate exposure. These contracts automate ownership records and transaction execution on-chain. Ethereum’s validator network secures these transactions across thousands of independent nodes. This structure reduces settlement risk for institutions handling large-value assets.

Ethereum is also known to facilitate high trading volumes on decentralized exchanges and institutional trading desks. Such liquidity enables investors to buy and sell positions without drastic fluctuations in prices. Consequently, issuers favor Ethereum when initiating products where active secondary markets are needed.

Issuers have already tokenized U.S. Treasuries, private credit funds, and real estate assets on Ethereum. These assets can be sold and purchased at any given time by investors in fractional ownership. Ethereum can execute these transactions in minutes compared to traditional settlement cycles, which take days. This pace enhances the efficiency of capital among the issuers and investors.

Tokenized Finance Growth Faces Limited Competition From Rival Chains

Ethereum owns a larger share of the market compared to other blockchains that support tokenized assets. BNB Chain manages approximately 12% to 13% of tokenized assets, and its value amounts to approximately $3.4 billion. In the meantime, Solana controls approximately 6% of the tokenized asset market, valued at roughly $1.7 billion. The network is fast in processing transactions and enables low-cost trading activity.

All these networks fulfill a specific role in tokenized markets. Nevertheless, none of them processes as much value as Ethereum. Together, these networks dominate less than 40% of the tokenized asset market.

Institutional Demand and Market Shift Drive On-Chain Expansion

Large asset managers currently use Ethereum to issue and manage tokenized financial products. BlackRock launched its BUIDL fund on Ethereum to offer tokenized money market exposure. The fund distributes yield directly to investors through blockchain-based settlement. It has already grown to billions in managed assets.

Franklin Templeton also introduced its BENJI fund to offer tokenized access to government securities. Investors are able to own and trade these assets directly in-chain without traditional intermediaries.

JPMorgan has also experimented with tokenization systems to settle internal settlements and institutional services. The bank leverages blockchain technology to transfer funds between accounts and enhance the efficiency of settlement. These experiments demonstrate the utilization of blockchain in real-world financial activities by traditional institutions.

Aside from the promising numbers, Matt Hougan, Chief Investment Officer at Bitwise, addressed Ethereum’s position in the tokenized finance market. He stated, “The community had gone somewhat astray and was in the depths of despair earlier this year. However, it has shifted toward execution and investor focus. I think they are shipping better now. I think the community is focused on investors and real outcomes.”

Bitwise CIO Matt Hougan: “Ethereum is the leading play on stablecoins and tokenization”

“The community had gone somewhat astray and was in the depths of despair earlier this year with a super long technical roadmap and accusations of being ‘ivory tower’, and now they’re much… pic.twitter.com/UUtT743Ojq

— Etherealize (@Etherealize_io) March 29, 2026

Hougan also compared tokenized markets to traditional financial sectors. He believes that the market is still underestimating tokenization, which he predicts will grow exponentially in the coming years.

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