Wall Street Wants To Tokenize Everything. But Who’s Buying?

What Happened

For decades, banks have relied on established financial networks to distribute investment products. Tokenization offers another route: reaching wider investors through blockchain-based platforms.

Banks could potentially sell tokenized funds and other investments to a new pool of customers without building an entirely separate distribution network.

The challenge is finding a way to reach blockchain investors while preserving the controls that regulated financial institutions require.

The Problem: Investors Still Need a Reason to Buy

Investors still need a product they understand, a return worth pursuing, and some confidence that they can recover their money.

“You have to understand what the client actually needs — to raise money, launch a new investment product, or connect to existing rails — and then help them reach liquidity,” said T-RIZE’s Thien Duy Tran.

Real estate offers a useful warning. Properties can be divided into digital investment tokens, theoretically allowing smaller investors to participate.

More standardized investments, including private credit and tokenized funds, have proved easier to position in T-RIZE’s experience.

The lesson for Wall Street is familiar. Investors care about the quality of an asset and whether they can sell it. Blockchain technology cannot settle those questions on its own.

The stakes extend far beyond investment portfolios. The Asian Development Bank estimates that businesses faced a $2.5 trillion trade-finance gap in 2025.

Market Context

Yet buyers can struggle to assess the underlying property or determine a fair price.

“Returns looked interesting, but market pricing was hard.”

Why It Matters

Interviews with financial infrastructure firms R3, T-RIZE, and XDC at TOKEN2049 reveal how this problem could shape Wall Street’s next expansion.

Consider a small Indonesian exporter shipping goods to Singapore. The company might need financing for just two or three days before receiving payment.

Details

Tokenization is moving fast, reaching nearly $40 billion in November 2026. There is a clear demand from Wall Street, whether from its banks or asset managers.

However, beyond tokenized stock, the demand and appeal of such products face a critical challenge. Turning any asset into a token does not guarantee anyone will buy it.

Wall Street’s Next Customers are Already on Blockchain

The commercial incentive is straightforward.

“It’s about how banks and others make money,” said R3 co-founder Todd McDonald.

However, traditional finance has a fundamental concern. Banks often want private networks where they can control access and protect sensitive transactions.

That creates a problem when the customers they want are somewhere else.

“If you lock something into a private network and there are no customers to reach and no transactions to be done, you can have as private a network as you want — nobody is there,” said Todd McDonald.

Getting traditional assets onto blockchain platforms solves only part of the distribution problem.

The $2.5 Trillion Opportunity That Still Needs Real Money