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đź“° JPMorgan: Tokenization Still Lacks Wide Institutional Adoption
JPMorgan says asset tokenization is falling short of expectations, with little uptake from traditional financial institutions. Analyst Nikolaos Panigirtzoglou notes that most enthusiasm comes from crypto-native firms, while banks and customers show minimal interest in shifting from traditional deposits to tokenized deposits on blockchains.
Projects like BlackRock’s BUIDL and Broadridge’s DLR offer efficiency gains but remain small in scale. Many traditional firms are improving settlement times via fintech, while blockchains lag behind in speed. Regulatory hurdles, legal challenges, and investor skepticism—especially around blockchain transparency—are slowing adoption.
Institutional crypto interest largely remains focused on Bitcoin, not tokenization. Still, the SEC’s Project Crypto could pave the way for US markets to move on-chain, and some experts foresee trillions flowing into the on-chain economy in coming years.
Despite the cautious tone, JPMorgan has been piloting tokenized transactions on its Kinexys blockchain in partnership with Ondo Finance and Chainlink in recent months.
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