Key Takeaways
- Digital-asset tokenization lets banks represent ownership of real-world assets as on-chain tokens, enabling faster settlement and programmable ownership.
- Major banks are already deploying tokenization pilots or live projects across deposits, bonds, funds, and commercial paper.
- Banks are embracing tokenization for benefits such as real-time settlement, fractional ownership, asset automation, and new markets in real-world assets.
- Although adoption is still early and liquidity remains limited, tokenization is poised as an irreversible trend, and the banks leading now may shape the financial infrastructure of tomorrow.
The concept of digital-asset tokenization is reshaping financial markets. Blockchain tokenization means representing ownership of a real-world asset, such as a bond, real estate unit, or deposit, with a digital token using blockchain or distributed ledger technology. Unlike conventional trading, where ownership is recorded in centralized ledgers and movement of assets may require intermediaries and settlement delays, tokenization enables programmable, on-chain representation of assets.
For example, a corporation bond, an artwork, or a deposit account can be traded, transferred, or used as collateral nearly instantly. Standard Chartered predicts that the market can grow to over $30 trillion by 2034. Because this new form of ownership and trading remains nascent, banks that adopt it first may enjoy first-mover advantage.
In this article, we’ll explore some of the banks that are already using tokenized assets, how they do it, and why.
8 Banks Already Using Tokenized Assets
Below is a list of the most prominent banks that have already moved from pilot phase to active deployment or near-live tokenization initiatives.
J.P. Morgan – CEO: Jamie Dimon
J.P. Morgan is one of the world’s largest investment banks and a global leader in financial services, providing investment banking, asset management, and payment solutions to institutional clients.
The bank has moved from proofs-of-concept into live tokenization experiments via its Kinexys/Onyx arm. In June 2025, the bank launched a permissioned USD deposit token (JPMD) as a proof-of-concept (pilot) on Coinbase’s Base Layer-2. As a result, it enabled institutional clients to move bank money on-chain 24/7 and settle instantly between eligible parties.
JPMD is an example of how a global bank can tokenize a deposit instrument while integrating public-chain rails with institutional access controls. In other words, this helps clients reduce pre-funding needs and speed liquidity flows.
Goldman Sachs – CEO: David Solomon
Goldman Sachs is a leading global investment bank and asset manager, known for its expertise in capital markets, trading, and financial innovation.
It developed internal blockchain tooling (private DLT solutions) to support tokenized fund ownership, and in July 2025, it publicly teamed with BNY Mellon to roll out tokenized money-market fund solutions. Goldman’s approach relies on a permissioned/private blockchain architecture to record ownership and enable transferability among institutional investors, while BNY Mellon integrates custody and servicing.
The initiative targets tokenized MMFs and institutional liquidity products. It shows how Wall Street dealers are embedding tokenization into core cash-management products.
BNY Mellon — CEO: Robin Vince / (BNY Mellon Corporation)
BNY Mellon is the world’s oldest and largest custodian bank, specializing in asset servicing, investment management, and institutional custody solutions for clients worldwide.
The bank has built out institutional-grade digital-asset custody and is now heading tokenized fund and treasury initiatives. In July 2025, BNY announced a collaboration with Goldman Sachs to maintain blockchain records of money-market fund ownership. Goldman provides the blockchain layer while BNY handles distribution and custody.
Separately, BNY acts as custodian and investment manager for tokenized U.S. Treasury and money-market products such as OpenEden’s tokenized Treasury fund. BNY’s LiquidityDirect platform is also being used to distribute tokenized products, demonstrating how a traditional custodian can operate both the asset-backing and the on-chain record.
UBS – CEO: Sergio Ermotti
UBS is a global wealth management and investment banking firm headquartered in Switzerland, known for serving institutional and private clients across 50+ markets.
The bank has issued and serviced digital bonds and structured products using regulated digital-exchange infrastructure. In 2022, UBS issued a CHF 375 million digital bond on SIX Digital Exchange (SDX), and it continues to develop tokenized issuance, custody, and secondary-market frameworks through its UBS Tokenize initiative.
UBS uses SDX’s DLT-based central securities depository for issuance and settlement, which enables on-chain listing, trading, and settlement backed by conventional legal frameworks. This work demonstrates tokenization for traditional capital-market instruments rather than purely crypto-native tokens.
Citi – CEO: Jane Fraser
Citi is a multinational financial institution offering corporate banking, global markets, and treasury solutions. The bank has a strong presence in cross-border finance and emerging markets.
Its digital assets division is active in tokenizing private-market securities while acting as a tokenization agent and custodian. In May 2025, Citi announced a strategic partnership with SIX Digital Exchange (SDX) to enable tokenized private-market asset issuance, settlement, and custody on SDX’s regulated DLT CSD platform.
Citi’s role focuses on onboarding issuers, custody, and enabling institutional distribution of tokenized late-stage private equities, private funds, and similar assets. Thanks to the partnership, global banks can use regulated DLT CSDs to expand access to illiquid markets.
Deutsche Bank — CEO: Christian Sewing
As the largest financial institution in Germany, Deutsche Bank provides investment banking, corporate finance, and transaction banking services across global markets.
Deutsche Bank has run several tokenization pilots, most notably supporting the issuance and settlement of tokenized bonds and participating in central bank / bank-consortium experiments. For example, Deutsche Bank worked with the Bundesbank and other partners on a €300 million tokenized bond for Siemens and supported KfW on a tokenized financing.
More recently, it has trialed blockchain-based payment rails (via Partior) and sought regulatory approvals to provide custody services. Deutsche Bank’s work focuses on using permissioned DLT networks for bond issuance, settlement, and token-based cash management.
HSBC — CEO: Georges Elhedery
HSBC is one of the world’s largest banking and financial services organizations. It serves over 40 million customers across commercial, retail, and global markets.
HSBC has expanded tokenized deposit and tokenization tooling for corporate clients. For example, the bank’s Tokenised Deposit Service (TDS) offers real-time settlement and on-chain record-keeping for corporate deposits. In addition, it has piloted tokenized bonds and green finance instruments.
HSBC also promotes its securities tokenization platform (HSBC Orion) for client use cases. Moreover, it collaborates with consortiums to explore tokenized stablecoins or tokenized cash instruments. HSBC’s deployments typically rely on permissioned/DLT platforms tailored to corporate cash and trade-finance workflows.
OCBC (Oversea-Chinese Banking Corp) — CEO: Helen Wong (Group CEO)
OCBC is a leading Singapore-based financial group offering retail, corporate, and wealth management services across Southeast Asia and Greater China.
The group has launched institutional tokenization in Asia with a large-scale US$1 billion digital U.S. commercial paper (USCP) program issued and serviced on blockchain, marking one of the first full-lifecycle tokenized USCP initiatives. Moreover, the program uses blockchain for issuance, settlement, and record-keeping, and leverages dealer partners (J.P. Morgan acting as sole dealer).
OCBC’s move shows how even regional banks can use tokenization to improve short-term funding access and liquidity resilience. At the same time, the on-chain issuance is built on permissioned DLT infrastructure coordinated by regional market utilities.
Why Are Banks Adopting Tokenized Assets?
Banks are embracing tokenized assets for several compelling reasons:
First Mover Advantage
The past 12 months have seen huge advances in the relationship between blockchain-based assets and the traditional financial system. The rise of institutional stablecoins and a speight of crypto ETFs both sent a jolt through the banking system. As big banks accept the inevitable merging of blockchain and legacy finance, key players have spotted the bigger picture: whoever innovates fastest stands to gain the most in this colossal new marketplace. So it’s no surprise that insitutions are clamouring for pole position in the tokenized assets space.
Greater Settlement Speed and Efficiency
Traditional asset transfers often take days, involve multiple intermediaries, and entail manual reconciliation. In contrast, tokenization can reduce settlement risk, enable real-time transfers, and support 24/7 global markets.
Fractional Ownership and Improved Access
High-value assets like real estate, bonds, or private-market funds can be broken into smaller tokens. As a result, more investors can participate, creating secondary liquidity pools.
Programmable Assets and Workflow Automation
On-chain tokens can embed contract logic, for example, automated dividend payments, transfer restrictions, or collateral triggers. This can improve compliance, auditing, and execution.
New Markets and Asset Classes
Banks can expands their product offerings beyond traditional securities by including RWAs. From real estate and infrastructure debt to trade finance receivables, and tokenized deposits. By tokenizing assets, banks can open up the “illiquid” universe for secondary trading . Consequently, this brings new forms of capital efficiency into the market.
Reclaim Value Chains
By controlling token issuance, custody, trading, and settlement, banks position themselves as custodians of trust in the emerging digital-asset ecosystem. At the same time, they leverage blockchain innovation rather than getting displaced by it.
Closing Thoughts
The banks leading the adoption of digital-asset tokenization are doing much more than pilot proof-of-concepts. They are rethinking the very infrastructure of finance. J.P. Morgan, UBS, Citi, Goldman Sachs, BNY Mellon, and others are already tokenizing deposits, bonds, funds, and private-market assets. While adoption remains early and secondary liquidity remains limited, the trend toward tokenization is irreversible.
