In July 2025, S&P Dow Jones Indices (S&P DJI) announced its entry into the tokenization space¹ via a strategic collaboration with Centrifuge, a decentralized infrastructure provider. The collaboration marks the first time that S&P DJI has licensed index data for the creation of a digital token and, in doing so, will bring the S&P 500^® onchain—taking a significant step into the realm of tokenization. This leading-edge technology has the potential to create new opportunities for both investors and institutions with benefits spanning from operational efficiency and increased access to deeper liquidity and innovation. The tokenized asset market excluding stablecoins² is estimated to be worth USD 25 billion as of July 30, 2025³ (see Exhibit 1) and is expected to grow to between USD 1-4 trillion by 2030⁴ (see Exhibit 2), highlighting the increasing relevance of this technology in finance.

What is Tokenization?

Tokenization refers to the process of allowing holders to transfer the rights to an asset through a digital token on a digital ledger technology such as blockchain.⁵ For example, physical assets such as real estate or art can be tokenized, as can investment tools such as bonds or equities.⁶

Tokens can both define the asset and specify what can be done with it.⁷ Additionally, the technology enables fractional ownership, allowing investors to own a portion of an asset rather than the entirety—potentially providing broader access to investment opportunities. By leveraging blockchain technology, tokenization may enhance transparency and operational efficiency, mitigating some of the potential risks associated with traditional asset management, such as errors from manual oversight.

Implications for Tokenized Traditional Assets

The implications of tokenizing traditional financial assets are significant. Firstly, it provides access to investments, enabling individuals who may be financially underserved to participate in the market. Secondly, tokenization can improve liquidity, as tokens can be traded across various platforms, potentially fostering a more dynamic market. Furthermore, the efficiency of blockchain technology can streamline processes, reduce costs and enhance settlement times. Traditional investment products typically involve intermediaries, such as brokers and custodians, which may introduce additional costs and inefficiencies. These fees can affect investor returns, as they reduce the overall profitability of investments. In contrast, tokenized assets may have the capacity to be traded directly between parties, potentially minimizing the need for intermediaries and facilitating quicker transactions. Additionally, the transparency of blockchain can potentially provide real-time insights into asset performance, a feature often lacking in traditional finance.

However, there are also potential hurdles, including regulatory challenges and market adoption. Regulatory bodies are still working to define the legal frameworks surrounding tokenized assets, which can create uncertainty for investors and institutions. Nonetheless, many market players are proactively engaging with regulators to establish clear guidelines, and some jurisdictions are already implementing frameworks that facilitate the growth of tokenization.⁸

Why S&P DJI is Entering the Tokenization Space

By licensing its intellectual property for use with tokenization, S&P DJI can provide a tool to offer cutting-edge products that resonate with a new generation of investors while continuing to meet the needs of its existing client base. This dual approach—licensing its intellectual property for both traditional finance and decentralized finance products—establishes S&P DJI as an index leader in both traditional and digital asset markets. As many financial institutions explore tokenization to enhance their offerings, S&P DJI’s proactive stance underscores its commitment to innovation and adapting to the changing demands of the market.

¹ S&P Dow Jones Indices. “S&P Dow Jones Indices Collaborates with Centrifuge to Bring the S&P 500 Index Onchain, Expanding Access to the World’s Most Widely Recognized Benchmark.” July 1, 2025.

² Bank of England. “What are stablecoins and how do they work?” Nov. 6, 2023.

³ Total RWA Onchain. RWA.xyz. Data as of July 30, 2025.

⁴ ~USD 1,900 billion by 2030 (baseline assumption) or ~4,000 billion by 2030 (optimistic assumption). See: Banerjee, Anutosh, et al. “From ripples to waves: The transformational power of tokenizing assets.” McKinsey & Company. June 20, 2024.

⁵ Birry, Alexandre and Chuck Mounts. “Toward a Tokenized Future.” S&P Global. Jan. 13, 2023.

⁶ Examples include the tokenization of publicly traded equities such as Tesla ($bTSLA) or Apple ($bAAPL) where each token represents a 1:1 ownership of an underlying security; and the tokenization of a U.S Treasury-backed money market fund, where tokenized shares are represented as BENJI tokens and the daily NAV and dividend distribution are handled by smart contracts (FOBXX).

⁷ Soni, Urav, Olivier Fines and Jinming Sun. “An Investment Perspective on Tokenization.” CFA Institute. January 2025.

⁸ Securitize testified before the U.S. House in June 2024; DTCC participated in the SEC’s May 2025 tokenization roundtable; the U.K. FCA has issued detailed policy guidance on tokenized assets; HKMA is piloting tokenized payment and asset frameworks as part of Hong Kong’s Project Ensemble.

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