What did Moody’s say about the future of tokenised finance?

Moody's Ratings said major US banks and financial institutions expect the shift to tokenised finance to begin slowly before accelerating rapidly after reaching a tipping point. The agency said most industry participants now see broader asset tokenisation as inevitable.

What is asset tokenisation in finance?

Asset tokenisation is the process of putting financial assets such as funds, bonds, deposits or real estate onto blockchain networks as digital tokens. Supporters believe this can make trading, settlement and transfers faster, cheaper and more transparent.

Why are US banks investing in digital asset infrastructure now?

Large banks and financial intermediaries are building digital asset teams and testing blockchain systems so they are prepared if adoption suddenly accelerates. Moody’s said firms do not want to be caught unprepared if client demand for tokenised assets and digital money rises quickly.

How big is the tokenised real-world asset market today?

The tokenised real-world asset market is worth about $31.6 billion, according to RWA.xyz cited in the report. Moody’s noted the sector has grown more than 420% since the start of 2025, although it remains small relative to traditional financial markets.

Which financial products are expected to be tokenised first?

Moody’s said simpler financial products such as funds, stablecoins, tokenised deposits and short-term instruments are likely to lead early adoption. More complex assets and wider institutional participation are expected later if infrastructure and regulation improve.

Why does tokenisation matter for crypto investors?

Tokenisation is becoming one of the main ways traditional finance and crypto are merging. Growth in tokenised assets could increase blockchain usage, expand stablecoin demand and strengthen the long-term investment case for crypto infrastructure platforms.

What risks did Moody’s identify around tokenised finance?

Moody’s warned that regulatory uncertainty, unresolved legal issues and weak user demand could slow adoption. The agency also said rapid tokenisation growth could pressure traditional payment processors, correspondent banks and smaller banks that rely heavily on deposits.

What are the three scenarios Moody’s outlined for tokenisation?

Moody’s described a “steady growth” base case, a low-growth scenario and a rapid adoption scenario. The agency said steady growth is the most likely outcome, where tokenisation expands gradually while traditional banks and asset managers remain central players.

US banks brace for fast tokenisation tipping point

Written by Jon CuthbertPublished May. 14 2026Last Updated May. 14 2026

Moody's Ratings said major US banks and financial market intermediaries expect the shift toward digitised finance and tokenised assets to begin gradually before accelerating rapidly once adoption reaches a tipping point.

The agency said industry participants widely viewed broad asset tokenisation as inevitable, although uncertainty remains around the speed and sequence of adoption across different markets and asset classes.

“Across our conversations, industry leaders generally believed that broad asset tokenisation will happen; the main uncertainties center around how quickly and in what sequence,”

Moody’s said.

Moody’s said tokenisation activity remains relatively small today, with most usage concentrated in cryptocurrency trading, cross-border retail payments and limited institutional applications, although the market for tokenised real-world assets has grown more than 420% since the start of 2025 to reach $31.6 billion according to RWA.xyz.

The agency said almost all large banks and financial intermediaries have established dedicated digital asset teams and innovation units to test blockchain infrastructure and prepare for a potential surge in client demand for digital money and tokenised assets.

Morgan Stanley recently appointed veteran executive Amy Oldenburg to lead its crypto division after announcing plans to launch three crypto exchange-traded funds and a crypto wallet as traditional finance firms expand blockchain-related operations.

Moody’s outlined three possible outcomes for the financial system, including a “steady growth” base case where tokenisation expands gradually while traditional banks retain dominant roles, alongside a more disruptive scenario in which stablecoins and onchain settlement systems pressure payment processors, correspondent banks and smaller lenders.