According to the Q2 2026 report by Allium, the volume of tokenized US funds onchain reached $14.2 billion, while tokenized equities hit $3.3 billion. This brings the total value of traditional financial instruments natively integrated into blockchains to over $17 billion.
The OnFi sector prioritizes compliance and operational efficiency, integrating KYC, AML, and institutional custody directly into smart contracts. This shift contrasts with the permissionless nature of earlier DeFi protocols, as noted by developer Andre Cronje in August 2026.
On September 17, 2026, the SEC granted a time-limited exemption for automated trading of US stocks via tokenized securities venues. These platforms utilize automated market makers for trading, with settlements occurring onchain, bypassing traditional T+1 cycles.
Major financial institutions, including BlackRock, Franklin Templeton, JPMorgan, State Street, Fidelity, and Citi, are actively developing tokenization strategies. Additionally, S&P Global recently announced the acquisition of blockchain security firm OpenZeppelin.
Despite growth, the sector faces challenges regarding legal custody frameworks and technical dependencies. Assets are currently fragmented across various blockchains, each operating with distinct technical standards, liquidity pools, and regulatory requirements.
