Tokenization Revolutionizes Capital Markets: A Shift to Onchain Infrastructure

Tokenization: A New Era in Capital Markets

In recent years, tokenization has evolved from a concept to a pivotal element in the financial landscape, according to Pantera Capital. The transition to onchain infrastructure is reshaping how capital markets operate, with a significant increase in real-world assets being tokenized on public blockchains.

As of 2025, more than $24 billion in assets have been tokenized, marking a threefold increase since 2023. This shift is driven by major financial institutions such as BlackRock, Franklin Templeton, Siemens, and J.P. Morgan, who are now placing substantial capital onchain. Fintech companies are not merely modernizing legacy systems but are actively building new infrastructure to facilitate the issuance and settlement of assets on public blockchains.

Innovations in Blockchain Technology

Robinhood's launch of Stock Tokens represents a significant milestone. These tokenized stocks, ETFs, and private shares are issued on Arbitrum, a leading Layer 2 solution on Ethereum. Robinhood's CEO, Vlad Tenev, has expressed the company's ambition to create Robinhood Chain, a network optimized for 24/7 global trading of tokenized assets, further exemplifying the shift towards blockchain-based financial systems.

This change is not limited to fintechs. Corporations are also embracing onchain issuance to lower capital costs and expand access to global liquidity. J.P. Morgan, for example, has developed a blockchain platform to process intraday repo trades, reducing settlement times from days to minutes. Similarly, Siemens and Société Générale have issued digital bonds directly on public Ethereum, demonstrating the growing acceptance of blockchain technology among traditional financial institutions.

The Future of Capital Markets

The migration to onchain infrastructure is poised to redefine capital markets. As liquidity for tokenized assets increases, the strategic playbooks of fintechs, corporates, and investors are evolving. These entities are moving away from Wall Street's traditional systems towards more efficient, blockchain-based solutions.

According to Pantera Capital, the tipping point for tokenization will occur when onchain equity volumes reach significant levels, attracting systemic allocators and encouraging broader adoption. The ongoing development of financial app-specific chains, regulatory clarity, and improved user experiences are expected to drive this transformation.

Challenges and Opportunities

Despite the progress, challenges remain. Most tokenized assets today do not offer full ownership rights, as they are still governed by offchain constructs such as SPVs and custodians. The future of tokenization will likely involve addressing these issues, as investors demand greater rights and issuers adapt to new market dynamics.

The momentum towards tokenization is undeniable. As the infrastructure matures and liquidity increases, blockchains are set to become the default platform for capital formation, price discovery, and value transfer, creating a truly global market.

For more details, visit the Pantera Capital website.