Digital finance goes mainstream as adoption grows

The evolution of digital finance is entering a more mature phase, with tokenisation increasingly shifting from speculative cryptocurrency activity to real-world asset (RWA) applications, according to a new report.

The study, Digital Assets and Tokenized Finance, published by the Future Investment Initiative Institute (FII Institute) and released at the FII PRIORITY Miami, highlights how digital assets are being integrated into core financial systems rather than operating at the margins.

The report finds that tokenisation is gaining traction across traditional asset classes, signalling a shift from experimental adoption to early-stage scale. Tokenised US Treasuries surpassed $8 billion in assets under management in 2025, while tokenised gold reached a market capitalisation of $3.4 billion. In addition, more than $10 billion in tokenised bonds have been issued, reflecting growing institutional participation and confidence in blockchain-based financial instruments.

This momentum suggests that financial institutions are increasingly exploring tokenisation not only as a technological innovation but as a mechanism to enhance operational efficiency and unlock liquidity. By representing real-world assets on distributed ledgers, market participants can enable fractional ownership, broaden investor access, and improve transparency in asset management.

A key driver behind this shift is efficiency. The report notes that tokenised systems can compress settlement cycles from the conventional T+2 framework to near-instant execution. This has implications for capital efficiency, as funds that would otherwise remain tied up during settlement can be redeployed more quickly. Faster settlement also reduces counterparty risk and operational friction, particularly in cross-border transactions where delays and intermediaries have traditionally increased complexity and cost.

Beyond efficiency gains, the report highlights the potential of tokenised finance to expand financial inclusion. Lower minimum investment thresholds could enable retail and underserved investors to access asset classes that have historically been restricted to institutional participants. At the same time, reduced transaction costs and improved infrastructure could support more efficient credit distribution and remittance flows.

Stablecoins are identified as a key enabler in this evolving ecosystem, particularly for cross-border payments. Their ability to provide price stability while operating on blockchain infrastructure makes them a practical bridge between traditional fiat systems and digital asset networks. This could prove especially relevant in emerging markets, where inefficiencies in payment systems and currency volatility remain persistent challenges.

However, the report cautions that the transition to mainstream adoption is not without constraints. Trust remains a central requirement for the next phase of growth. Regulatory clarity, interoperability between platforms, and robust cybersecurity frameworks will be critical to ensuring confidence in digital financial instruments. Without these foundations, the scalability of tokenised finance could be limited despite growing demand.

The report also underscores the importance of underlying physical infrastructure. While digital finance is often viewed through a technological lens, its expansion is closely tied to data centres, energy supply, and computing capacity. As such, the growth of tokenised finance is increasingly linked to broader infrastructure and geopolitical considerations.

Contributions to the report include perspectives from Fred Thiel, Ryan Hayward of Barclays, and Dante Disparte of Circle, reflecting a broader industry dialogue on the role of tokenisation in future financial systems.

Taken together, the findings point to a structural shift in global finance, as digital assets move beyond experimental use cases and become increasingly embedded within mainstream capital markets.