Major US banks and financial intermediaries believe the shift to a digitized financial system will begin slowly before accelerating rapidly at a tipping point, according to Moody’s Ratings. Tokenization activity is currently low but traditional finance institutions are actively preparing through dedicated teams and industry pilots. The tokenized real-world asset market has grown over 420% since early 2025 to $31.6 billion, with potential outcomes ranging from steady growth to disruptive transformation of the financial system.
Major US banks and financial market intermediaries expect the transition to a digitized financial system to start slowly, then hit a tipping point at which it accelerates, according to credit rating agency Moody’s Ratings. In a report, the agency said that most viewed the shift as inevitable and agreed it would start “slow, then fast,” with tokenization volume increasing.
“Across our conversations, industry leaders generally believed that broad asset tokenization will happen; the main uncertainties center around how quickly and in what sequence,” Moody’s said. The agency noted that near-term progress is expected to remain gradual, focused on simpler segments like funds, but a tipping point will eventually be reached where broader adoption accelerates rapidly.
Current tokenization activity is low, with main uses in cryptocurrency trading, cross-border payments, and some institutional cases. However, traditional financial institutions are laying groundwork for adoption. “Almost all large banks and major financial market intermediaries have established dedicated digital-asset teams or innovation units and are participating in industry pilots to test new infrastructure,” Moody’s stated.
The size of the tokenized real-world asset market has increased by more than 420% since the start of 2025 and is worth $31.6 billion, according to analytics platform RWA.xyz. In January, Morgan Stanley tapped veteran executive Amy Oldenburg to lead its new crypto unit.
Moody’s outlined three possible outcomes for the financial system depending on tokenization pace. In the most likely “steady growth” scenario, the system stays largely the same with tokenization scaling in select assets like stablecoins. A low-growth scenario would see tokenization confined to narrow uses, while rapid growth could disrupt legacy market plumbing and pressure some incumbents.
