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- Pantera says the tokenization market has grown to $321 billion, but is still structurally immature.
- Its Tokenization Progress Index found that most tokenized assets still act as wrappers around traditional financial products.
Pantera says Coding It is growing rapidly, but it has not yet become the financial redesign that many in the cryptocurrency space expected.
Most tokenized assets are still shells
The crypto asset manager analyzed 542 tokenized assets across 11 asset classes using the Tokenization Progress Index, a framework that scores issuance, portability, and composability from 1 to 5.
The average score was only 2.04. This is important. according to Panteraapproximately 77.6% of the assets tracked fall into the “wrapped” layer, meaning that they mostly reproduce traditional financial products without fundamentally changing how these products work. Another 11.1% qualify as hybrids, while only 2.7% make it to the original class.
Pantera described the current phase as being similar to putting a newspaper on a website. The content is digital, but the format has not changed yet.
This is the main criticism. Tokenization has brought assets such as safes, funds, and credit products Block chains. But many of them still rely on gated issuance, controlled redemptions, and familiar off-chain operations. Pantera found that 91.1% of registered assets still use restricted issuance and redemption models.
Local financing remains scarce
The report argues that most issuers are still copying the traditional market structure rather than designing around continuous settlement, composability and onchain governance. Only 13 originals achieved independent or nearly identical mint and burn function.
Decentralized finance Integration is also limited. Only 10.6% of assets have reached Pantera’s threshold for meaningful composability, where tokenized assets can be used normally across lending, collateral, liquidity, and other onchain systems.
Stablecoins The exception remains. It is the only tokenized asset class that operates on a meaningful economic scale while also showing real on-chain utility.
This leaves the broader $321 billion tokenization market in the lurch. Growth is real. The institutional interest is real. But the market is still mostly building digital versions of legacy tools, and not yet the home-grown financial infrastructure they were supposed to enable.
