Top 3 fastest growing tokenized asset classes and what they signal

What are the fastest growing tokenized asset classes in the past 12 months?

The answer may surprise you.

The 3 fastest growing tokenized assets in the past 12 months are:

1. Tokenized US Treasuries: +490%

2. Tokenized US Equities: +450%

3. Tokenized Investment Funds: +82%

While I expected big things from tokenized US Treasuries, I am still impressed by the absolute scale of their growth, from $1.2B to $5.9B. And all this before they are being widely used as collateral in intraday repo.

The explosive rise of tokenized US equities and investment funds caught me off guard. I wasn’t expecting them to climb this fast. 

In this Weekly Research, I will take a look behind the headline numbers to identify:

• the biggest drivers for this surge

• what do they tell us about onchain capital allocation

• what does it mean for asset issuers 

Let’s dive in.

Tokenized US Treasuries

In my last Weekly Research, I mentioned that tokenized MMF/US Treasuries unlocked a USD savings account for the world. The numbers look to be supportive of that view.

Over the past 12 months, tokenized MMFs exploded from $1.2B to $5.9B — a +490% growth surge. Below, I break down how the top 10 players have evolved — and what it means for the future.

Key takeaways:

1. The top three products remains unchanged

BlackRock (BUDL), Ondo (USDY, OUSG) and Franklin Templeton (BENJI) led the space in 2024 and they are still the main players today, suggesting there is a big first mover advantage in the space for asset managers who embrace the space early.

2. The market is broadening

In 2024, the top three controlled $900M AUM; today they combine for $3.8B. A whopping 400% increase. The good news for the asset managers still sitting on the fence is that the top 3’s combined market share dropped from 71% in 2024 to 63% today, suggesting the overall market size is growing faster than the top 3 can keep up.

3. The space is top heavy

The No.1 product in 2024, BENJI, had about 32% of the market, but in 2025, the No.1 product, BUIDL, has 42% of the market. When we put this in the context of a rapidly expanding asset with 300%+ annual growth rate, the prize on the offer is very substantial. 

For asset managers thinking about okenization strategies, one thing is clear: tokenized MMF should be your No.1 priority. Why?

• Stablecoin, tokenized USD cash account, is growing at 20%+ a year. 

• Tokenized MMF, tokenized USD savings account, has gone from <1% of the stablecoin market to 2%+ of stablecoin market cap in a year. 

With stablecoin growing at 20%+ a year, tokenized MMF growth is likely to accelerate. Coupled with the collateral mobility use case, tokenized MMF is poised to scale across both crypto native as well as TradFi verticals. Here is the deep dive analysis behind BlackRock BUIDL’s meteoric AUM increase.

Tokenized US Equities

In my last Weekly Research, I called out tokenized US Equities as the next asset class to watch. But I was still pleasantly surprised by how fast it’s happening. 

In the past 12m, tokenized US equities grew from $4M to $18M, a 450% increase. See the top 10 product comparison below.

Key Takeaways:

1. The market is expanding in breadth

In 2024, there were 30 tokenized stocks with AUM. Today there are 90. This tripling in breadth signals not just more choice but also adoption progress of this asset. 

2. Simple wins

The fact the top product with over 50% of the market is a tokenized equity index product sends a clear message to asset issuers. Users want simple, well-known, liquid products.

3. Technology and crypto stocks dominate

Despite the explosion in product choices, one thing hasn’t changed. Technology and crypto-related stocks still dominate the top 10. This is a clear signal about who the early adopters are — and what they want.

Currently the asset is still in its infancy, but with $30T market capitalization sitting at Nasdaq and $32T sitting at NYSE, I expect tokenized US equities to grow quickly. You can read a more detailed analysis on the tokenized US equities market here.

Tokenized Investment Fund

This is the 3rd fastest growing asset in tokenization. It has grown from $245M to $434M in the past 12m, +78%. Though 80% of the growth is driven by 2 products, USCC and ACRED.

USCC is Superstate’s Crypto Carry Fund. According to its website, USCC offers Qualified Purchasers access to crypto basis strategies. In essence, USCC is a tokenized hedge fund trading strategy with a legal wrapper and a fund structure. If you want to learn more about how this product works, you can read my detailed analysis here.

ACRED is Tokenized Apollo Diversified Credit Securitize Fund. It is a tokenized feeder fund with lower investment minimum than investors otherwise are required when subscribing via traditional private wealth or institutional asset allocation channels. You can read my detailed analysis on this product here.

Key Takeaways:

1. Limited primary market

There is a primary market of approx $10M-$100M in size for tokenized alternative funds - whether that is a crypto/PE/private credit/HF product. Only the top 3 products have AUM over $50M. If an alternative asset manager is looking to raise more money, onchain capital isn’t the easiest place despite all the ink spilled on marketing and news.

2. Limited investor breadth

The upsurge from USCC and ACRED is made up of fewer than 25 wallets. The dream of alternative asset managers expanding their distribution channels to non-traditional places remains largely ineffective in the onchain space.

Top 3 tokenized fund products, Blockchain Capital’s BCAP, Superstate’s USCC and Apollo’s ACRED, combined have fewer than 100 wallet holders. The only product with significant breadth in investors is Republic’s Note, a tokenized VC investment fund product, and that comes with Republic’s own distribution of 1M registered users. And this remains one of the biggest hurdles for tokenizing illiquid and alternative products.

For the foreseeable future, tokenized MMF/US Treasuries and US equities likely to remain the main focus for adoption. After all, tokenized MMF = USD savings account and tokenized US equities = USD investment account.

Disclaimer: This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.