Tokenization Boom Takes Center Stage at Davos 2026 as Market Exceeds $21 Billion

Almost four days into the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, the strongest and most consistent theme for crypto has been the tokenization of real-world assets (RWAs).

The event commenced on Monday, January 19, 2026, and will go on until Friday, January 23, with more Binance founder and former CEO, Changpeng Zhao (CZ), also in the lineup.

Tokenization Emerges as Crypto’s Dominant Theme at Davos 2026

WEF-related publications continue to describe 2026 as an “inflection point” for digital assets. They argue that blockchain has moved beyond pilot programs and into live production.

Rather than revisiting long-running debates about whether digital assets belong in the financial system, Davos 2026 focused on how they are being integrated.

The conversation has moved from ideology and speculation to infrastructure, scalability, and enterprise-grade deployment.

In that sense, tokenization was widely framed as the mechanism through which blockchain technology is quietly embedding itself into TradFi.

This shift was evident across high-level panels, including sessions titled “Is Tokenization the Future?” and “Where Are We on Stablecoins?”

These discussions brought together senior figures, including Ripple CEO Brad Garlinghouse and Coinbase CEO Brian Armstrong. Others included officials from the European Central Bankand representatives from major financial institutions.

Panelists emphasized tokenization’s ability to make traditionally illiquid assets (equities, bonds, funds, and real estate) tradable on-chain. This was aimed at enabling fractional ownership, improving liquidity, and reducing cross-border settlement friction.

Institutions including BlackRock, BNY Mellon, and Euroclear are now deploying tokenized products at scale. This reflects a broader convergence between banks and blockchains.

Regulatory clarity achieved in 2025, particularly in the US and parts of Europe, was repeatedly cited as the catalyst enabling this transition.

Stablecoins also played a prominent role as the connective tissue between TradFi and DeFi systems. Often described as the first truly universal blockchain use case, stablecoins were positioned as foundational infrastructure for payments, treasury management, and on-chain settlement.

With clearer global frameworks emerging, including references to the US GENIUS Act, stablecoins are increasingly viewed as complementary to, rather than disruptive of, existing financial rails.

Tokenization Moves from Pilot Projects to Trillions-Scale Financial Infrastructure

Fresh data shared during WEF in Davos highlighted the scale of the tokenization opportunity. Total value locked (TVL) in tokenized RWAs has now reached past $21 billion. This reflects both rising adoption and a broader mix of asset classes coming on-chain.

Long-term projections highlight the magnitude of the trend. McKinsey estimates the tokenized asset market could reach between $2 trillion and $4 trillion by 2030. Meanwhile, Boston Consulting Group has outlined a more aggressive scenario of up to $16 trillion.

Industry leaders used Davos to showcase real-world progress. Ripple CEO Brad Garlinghouse said the company is working closely with global banks to bridge the gap between tokenization and DeFi.

He indicated that tokenization volume on the XRP Ledger surged from $19 trillion to $33 trillion in just one year. The focus, he argued, is on institutional-grade rails rather than speculative use cases.

Infrastructure providers echoed that message. SWIFT said interoperable tokenized assets could significantly speed up global trade, unlock trapped liquidity, and connect TradFi with digital finance at scale.

Coinbase CEO Brian Armstrong added that tokenized equities represent the future of traditional markets. The crypto executive framed them as an inevitable evolution of stock market infrastructure rather than a crypto-native experiment.

Incumbent Markets Embrace Tokenization as Core Financial Infrastructure

That view is gaining traction among incumbents. The New York Stock Exchange (NYSE) is exploring tokenized securities and 24/7 trading without altering existing regulatory frameworks.

It aims to modernize market plumbing rather than encourage speculative behavior. Meanwhile, data shared during Davos showed that more than 65% of tokenized assets, including fiat-backed stablecoins, are currently issued on Ethereum. This reflects its central role in the emerging tokenized economy.

Taken together, Davos 2026 revealed that tokenization is no longer a future concept. It is becoming the primary lens through which global finance engages with crypto, less as a disruptive force and more as a durable infrastructure quietly reshaping capital markets.