$8.3 Billion in On-Chain Real-World Assets: Will Banks Lead in Crypto Custody?
By Andjela Radmilac | October 22, 2025
Major banks now use tokenization. They change old assets to blockchain tokens. This shift brings $8.3 billion in treasury tokens on-chain. It brings real-world asset value near $24–30 billion. Banks now rethink cash, stock, and fund work. They may soon hold key crypto safekeeping roles.
From Caution to Token Work
Banks once feared crypto. They did not trust safe custody. Now trends shift fast. Giants such as Goldman Sachs, Citi, BNY Mellon, and BlackRock build on-chain tools. They mix blockchain tokens with bank systems. They see tokenization as a way to smooth work. Tokenized assets settle in real time. They bring fresh cash flow and speed in moving assets.
The Start: Tokenizing Money Market Funds
Early tokens come from money market funds. These funds have low risk and quick cash use. They invest in safe short-term government and corporate debt. Goldman Sachs and BNY Mellon move quickly here. BNY Mellon uses tokenized funds on its LiquidityDirect tool. Digital tokens move fast and settle without old delays.
Expanding to Private Markets and Digital Securities
Citi works in private markets, too. As a token agent at the Swiss Digital Exchange, Citi holds tokens for bonds and shares. The tech makes bill payment and asset move occur at once. This link cuts risk and speeds the work of settling trades. It fits what old financial players need.
BlackRock’s View: Token Funds Meet ETFs
BlackRock sees token funds join the ETF world. Its BUIDL fund shows tokenized Treasuries can mix with ETFs. This mix brings a fresh look to portfolio work. Token funds may grow into key product lines. They might work with, or even match, current ETFs. Asset work may change as banks mix old and new methods.
The Road Ahead: Custody Races and System Fits
Although $8.3 billion in token treasuries is a big step, the market expects growth near $100 billion. The main query asks which bank wins digital paper custody. Bank teams join to build new, safe systems. They mix old bank trust with blockchain speed. Tasks remain on clear rules, how platforms tie, and how systems join.
Why Tokenization Matters
Tokenization does more than change paper into digit. It marks a shift in market systems. On blockchain, asset links are fixed:
• Instant settle: Trades clear in real time.
• Clear records: Ledger notes cut fraud.
• More liquidity: Tokens trade any time.
• Smoother work: Fewer middle steps drop cost and speed stays high.
Conclusion
Placing real assets on blockchain is not a short trend. Banks such as Goldman Sachs, Citi, BNY Mellon, and BlackRock push token treasuries and token securities. Banks now may hold key roles in crypto custody.
Tokenization joins old finance with crypto methods. It points to a time when many trillions of assets move on-chain. The years ahead will show which banks lead as trusted keepers in this new space and how buyers work in the change that unfolds.
For updates on tokenization, digital finance, and real-world asset digit work, check CryptoSlate.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with AuCan Gold.
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