Tokenization Enters the Market Structure Phase
tZERO Group, Inc.
Redefining how capital is raised, traded, and owned in a Web3 world
Entering 2026, tokenization is increasingly addressed as a market structure consideration rather than a standalone innovation. Activity across capital markets, banking, and payments – from institutional forecasts to live on-chain deposit systems – signals growing alignment between blockchain infrastructure and traditional financial workflows.
The implications extend beyond individual assets or use cases. Attention is turning to how issuance, settlement, custody, and cross-border movement function within continuous, digitally native markets.
The early weeks of 2026 reinforce a central theme: tokenization is no longer a story about assets – it’s a story about systems. As banks, brokers, regulators, and institutions move from pilots to production, the future of digital markets will be defined by who can connect liquidity, compliance, and settlement across an increasingly on-chain financial world.
Here's what's shaping digital markets this week:
Bernstein Calls a Tokenization ‘Supercycle’ for 2026
Wall Street broker Bernstein says crypto markets have likely bottomed and expects 2026 to mark the start of a tokenization “supercycle” spanning stablecoins, capital markets, and prediction markets.
The firm reiterated its $150,000 bitcoin target for 2026 and $200,000 as a peak-cycle estimate in 2027, while pointing to tokenization – not speculative trading – as the next engine of growth. Analysts expect stablecoin supply to grow more than 50% year-over-year to roughly $420 billion, on-chain tokenized assets to exceed $80 billion, and prediction market volumes to double.
Rather than focusing solely on tokens, Bernstein highlights crypto-linked equities – such as Coinbase, Robinhood, Figure, and Circle – as proxies for tokenization’s expansion into regulated financial workflows.
Why it matters
A “supercycle” driven by tokenization signals a shift away from asset price narratives toward infrastructure adoption. The next leg of growth depends less on new tokens and more on how real-world assets, payments, and financial contracts move on-chain at scale. That places market structure, compliance, and connectivity – rather than speculation – at the center of value creation.
Four Industries Tokenization Could Reshape Next
Real-world asset tokenization is steadily moving from concept to implementation, with tangible traction across multiple industries.
According to The Motley Fool, U.S. Treasuries already represent nearly half of all on-chain RWAs, while tokenized equities and commodities are advancing alongside regulatory progress at institutions like Nasdaq and the DTCC. Real estate remains early, but forecasts suggest trillions in assets could migrate on-chain over the next decade. At the same time, RWA growth is increasingly viewed as crypto’s pathway into mainstream financial adoption – particularly on smart contract platforms like Ethereum.
Why it matters
Tokenization’s impact is uneven but cumulative. Each asset class introduces different requirements for settlement, custody, investor protections, and liquidity. As more industries move on-chain, the winners won’t be single-asset platforms – they’ll be infrastructure providers capable of supporting diverse assets under consistent regulatory and operational frameworks.
Lloyds Executes UK’s First Tokenized Deposit Transaction
Lloyds Bank completed what it says is the UK’s first issuance of tokenized deposits on a public blockchain, using the Canton Network to purchase a tokenized UK Gilt from Archax.
The pilot demonstrated seamless movement between blockchain-based tokens and traditional bank accounts, while maintaining interest-bearing deposits and FSCS protections. Lloyds also operated its own validator node, applying the same security and risk standards used for conventional cash deposits.
Why it matters
Tokenized deposits offer a bridge between blockchain efficiency and traditional banking trust. Unlike stablecoins, they preserve existing legal, regulatory, and balance-sheet frameworks while enabling programmability and real-time settlement. This marks a critical step in embedding blockchain rails inside the core banking system – rather than alongside it.
Tokenized Deposits Begin to Eclipse Stablecoins for Institutions
After two years of stablecoin dominance, a shift is underway. In 2026, tokenized bank deposits are emerging as the preferred on-chain dollar for institutional and wholesale flows – not because stablecoins disappear, but because banks are turning deposits into programmable infrastructure.
As interest rates fall and regulatory frameworks tighten, the economics underpinning nonbank stablecoins are becoming more constrained. Banks, by contrast, can tokenize deposits while retaining existing supervision, insurance, and balance-sheet integration – adding 24/7 settlement and composability without reinventing money.
Major institutions including Citi, HSBC, and J.P. Morgan have already deployed live tokenized deposit systems for cross-border payments, treasury operations, and large-value settlement.
Why it matters
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Institutional money favors continuity over disruption. Tokenized deposits scale where stablecoins struggle because they align with how banks, treasurers, and regulators already operate. The future on-chain dollar for wholesale finance is increasingly issued by banks themselves – upgraded, insured, and embedded into existing financial infrastructure.
Russia’s Tokenized Assets Hit $1.5B Monthly Amid Sanctions Pressure
Russia’s issuance of digital financial assets (DFAs) reached roughly $1.5 billion in a single month in late 2025, dominated by state-backed banks such as Sber.
While the headline figures are inflated by short-duration rollovers and fragmented liquidity, a key driver is geopolitical: Russia now permits DFAs to be used for cross-border payments explicitly to work around sanctions. Tokenization platforms operate under central bank oversight, but volumes increasingly reflect non-commercial demand.
Why it matters
Tokenization is not neutral infrastructure – it reflects policy choices. Russia’s experience highlights both the risks of fragmented liquidity and the power of on-chain rails in constrained environments. For other jurisdictions, it serves as a case study in why clear regulation, market integrity, and liquidity design matter as tokenized systems scale.
From tZERO
tZERO Advances Toward Unified Tokenized Markets
tZERO announced that legacy regulatory restrictions have been lifted, allowing the firm to expand beyond digital asset securities into non-security crypto assets using its regulated digital broker-dealer platform.
As one of only two original special purpose broker-dealers, tZERO brings years of experience custodying tokenized assets directly on-chain, operating regulated trading venues, and supporting end-to-end tokenization workflows. Combined with recent support for self-hosted wallets and on-chain settlement, the expansion positions tZERO to operate across crypto assets, tokenized securities, and real-world assets under one regulated roof.
Non-security crypto asset deposits are expected to launch in early Q2 2026, with additional services to follow.
Why it matters
Operational and regulatory distinctions between asset types are increasingly artificial. Markets are converging on shared blockchain rails, but institutions require regulated infrastructure that spans crypto, securities, and real-world assets without fragmentation. Platforms built at the intersection of TradFi and blockchain are best positioned to support that convergence at scale.
About tZERO
tZERO Group, Inc. (tZERO) and its broker-dealer subsidiaries provide an innovative liquidity platform for digital securities. We offer institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology and make such equity available for trading on an alternative trading system. tZERO, through its broker-dealer subsidiaries, democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors. All technology services are offered through tZERO Technologies, LLC. For more information, please visit our website.
About tZERO Digital Asset Securities, LLC
tZERO Digital Asset Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. It is the broker-dealer custodian of all digital asset securities offered on tZERO’s online brokerage platform. Digital asset securities may not be “securities” as defined under the Securities Investor Protection Act (SIPA) – and in particular, digital asset securities that are “investment contracts” under the Howey test but are not registered with the Securities and Exchange Commission are excluded from SIPA’s definition of “securities” – and thus the protections afforded to securities customers under SIPA may not apply. More information about tZERO Digital Asset Securities may be found on FINRA’s BrokerCheck.
About tZERO Securities, LLC
tZERO Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. It is the operator of the tZERO Securities ATS. More information about tZERO Securities may be found on FINRA’s BrokerCheck.
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