Tokenized bonds to hit $1 trillion by 2028: report

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Tokenized bonds will be a $1 trillion market by 2028, the latest report on the future of asset tokenization has claimed.

The “Blockchain and Cryptocurrency Market Overview 2025” by Research and Markets noted that the blockchain sector had recorded explosive growth in 2024, boosted by ETFs, the election of Donald Trump in the U.S. and improving regulatory clarity.

In 2024, the number of digital asset holders had surged 30% year-over-year to hit 560 million, the report revealed. Emerging markets led the growth, with South America and Oceania emerging as the fastest-growing hubs. According to the report, most digital asset owners are speculators and HODLers, with 65% of ‘crypto’ holders “adopting a long-term buy-and-hold strategy.”

Beyond speculation, the report said that tokenization remains the blockchain application with the highest potential. It projects that tokenized bonds, in particular, will hit $1 trillion by 2028.

Three weeks into 2025, some major banks have already announced landmark tokenization efforts. In Singapore, the second-largest bank, OCBC, announced a new solution that lets clients tokenize corporate assets and sell them to accredited investors. The solution would slash the minimum investment from $183,000 to $730.

American financial firm Northern Trust (NASDAQ: NTRS) also recently announced that it will launch tokenized green bonds for the National University of Singapore later this year.

Even in China, where the government has long banned digital assets, tokenization is taking root. Recently, Zhuhai Huafa Group, a Chinese state-owned holding company, issued a $190 million digital bond on the HSBC Orion blockchain platform. The bond will be available to Chinese clients through the Hong Kong Exchange (HKEX) and international investors through Euroclear and Clearstream.

The EU is also bracing to play a vital role in the tokenization industry, with MiCA laying the foundation on the regulatory front. On Monday, EU finance ministers met to further discuss tokenization and how the region can promote local solutions amid steep competition from Asian and American firms.

The bond market has been the biggest market for tokenization. However, the technology can be applied to almost every other sector. In a recent interview, Mastercard’s (NASDAQ: MA) chief digital officer, Pablo Fourez, revealed that the payments giant is seeking to tokenize all online payments by 2030 to eliminate the need for card numbers, passwords and codes, which are a haven of crime.

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