TOKN: Investing in the Tokenization & Stablecoin Ecosystem

Amidst the churning volatility of cryptocurrency markets, two technologies are bringing stability and structure to digital finance: stablecoins and tokenization. Stablecoins are a type of digital currency that provides a relatively stable value, typically by being pegged to a reference asset such as a fiat currency (i.e., the U.S. dollar) or a basket of assets, while tokenization brings them onto blockchain networks. Here’s a forecast for the potential addressable market:

The Global X Tokenization Ecosystem Index ETF (TOKN) provides diversified exposure to the companies driving transformation in the cryptocurrency sector.

By tracking the Mirae Asset Stablecoins and Tokenization Index, TOKN seeks to capture firms positioned to benefit from the growing use of blockchain in payments, asset ownership, and financial infrastructure.

“The shift toward tokenization and stablecoins represents the next generation of financial technology, and we’re already seeing meaningful implementation underway across global financial markets,” says Ken Chen, Senior Analyst, Index Strategies at Global X.

“Our TOKN ETF was built for Canadian investors seeking diversified exposure to the companies building the infrastructure and platforms supporting the future of finance, from trading and distribution to payments, settlement, and custody.”

Stablecoins and tokenization are being explored as potential solutions to long-standing financial inefficiencies.

Stablecoins are digital tokens designed to maintain a stable value relative to a reference asset, such as the U.S. dollar. They enable near-instant settlement across borders without relying on traditional banking networks.

Tokenization is the process of converting ownership rights in a real-world asset, such as an apartment building, bond, or work of art, into a digital token that is recorded, transferred, and managed on a digital blockchain network or distributed ledger. The process has the potential to increase market accessibility by enabling fractional ownership and near-instant settlement, simplifying capital formation and unlocking liquidity by converting illiquid assets into tradable digital units.

Note: This is an example of tokenization in action: digitizing a well-known work of art, e.g. the Mona Lisa, which is still on display in the Louvre Museum, Paris.

Over the last 40 years, capital markets have been moving towards digitization, from paper certificates to ones and zeroes. As markets evolve to enable faster, global transactions and a growing range of assets on decentralized blockchain networks, the potential for instant cross-border asset transfer may continue to expand.

Source: Mirae Asset Global Investments, 2025.

In August 2025, over US$10 billion moved through stablecoins, with stablecoin payments forecast to reach as much as US$122 billion by the end of 2025.¹ Major financial firms including BlackRock and JPMorgan, are piloting tokenized funds, while Visa and PayPal offer stablecoin-based settlement systems. Together, these initiatives signal a shift from experimentation to practical adoption, bridging traditional and digital finance.

The passing of the GENIUS Act in the U.S. in June 2025 marked a turning point for digital asset regulation: the act requires stablecoins to be fully backed by high-quality, liquid assets, provides for timely redemption and disclosure, and prohibits interest payments to holders. It also classifies issuers as financial institutions under the Bank Secrecy Act, subjecting them to anti-money-laundering and sanctions-compliance rules.

One of the Act’s key directives is consumer protection, ensuring stablecoin issuers maintain strong oversight and transparency.² President Donald Trump called the GENIUS Act “a decisive step affirming America’s role as a leader in digital assets,” noting that it dispels the notion that cryptocurrencies would fade from prominence.³

With the framework now in place, U.S. regulators are expected to clarify capital requirements, custody standards, and cross-border oversight. The developments could accelerate global policy alignment and increase institutional participation in stablecoin.

McKinsey estimates that the value of tokenized financial assets could exceed US$4 trillion by 2030, while broader real-world asset tokenization could reach US$16 trillion.⁴

Unlike speculative cryptocurrencies, stablecoins are backed by real-world assets and fall under formal regulatory oversight (the U.S. passed the GENIUS Act while the Canadian government indicated it was committed to introducing regulations in its November 2025 Federal Budget). Stablecoins are designed to facilitate faster, lower-cost transactions and could serve as an efficient bridge between traditional finance and blockchain networks.

As of December 31, 2025, stablecoin market capitalization reached US$306 billion, driven by regulatory clarity and institutional adoption.

Stablecoins have evolved beyond trading tools to address real-world inefficiencies in payments and settlements, drawing growing interest from financial institutions, corporates, and regulators alike.⁵

The Bank of Canada has been tasked with oversight of stablecoins. Governor Tiff Macklem says “good” money must be safe, easy to use and have stable purchasing power as stablecoins proliferate. Issuers must back coins one-for-one with high-quality liquid assets and fully disclose redemption timing and fees, and maintain operational resilience.

The tokenization of U.S. Treasury securities has emerged as one of the clearest real-world applications of tokenization, with asset managers and financial institutions launching blockchain-based Treasury products that support faster settlement and improved operational efficiency. Tokenized U.S. Treasuries alone have already grown into a multi-billion-dollar market, with nearly US$10 billion currently issued on-chain and utilized by major asset managers and funds. Against a U.S. Treasury market exceeding US$30 trillion in outstanding issuance, this early adoption highlights both the practical use cases and the significant long-term growth potential for tokenized fixed-income assets.

“The growth of tokenized U.S. Treasuries shows how tokenization is being applied to core financial instruments, not just cryptocurrencies and emerging asset classes,” Global X’s Chen adds. “This supports the thesis that this financial technology is here to stay and will have significant implications for the future of finance. What matters for investors is the ecosystem enabling that adoption, including asset managers, exchanges, custodians, and payment platforms, which is exactly what TOKN is designed

The Mirae Asset Stablecoin and Tokenization Index, which is tracked by TOKN, measures the performance of companies deriving substantial revenues or strategic value from these technologies. The index provides exposure to four key themes in this space:

Infrastructure: Companies developing infrastructure for token-based payments, settlements, stablecoin-related activities, and/or providing institutional-grade digital-asset custody.

Token Distributors: Exchanges/brokerages facilitating tokenized asset trading, or firms holding a significant share of corporate reserves in programmable tokens.

Asset Tokenizers: Companies managing tokenized assets or offering tokenization services.

Stablecoin Issuers: Companies engaged in issuing fiat-backed stablecoins.

Here is a brief look at some of the leading companies involved in the tokenization and stablecoin space that are part of TOKN’s portfolio:

Coinbase Global (founded 2012): A leading exchange and custodian facilitating cryptocurrency and stablecoin trading. It partners with Circle on USDC and develops institutional tokenization infrastructure.

Block Inc. (founded 2009): Formerly Square, Block integrates blockchain and payments through Cash App and TBD, advancing Bitcoin and stablecoin initiatives aimed at expanding decentralized finance.

Circle Internet Financial (founded 2013): Issuer of USDC, the world’s second-largest regulated stablecoin. Circle collaborates with banks and payment firms to extend stablecoin usage in global commerce.

JPMorgan Chase & Co. (founded 1799): Through its Onyx platform and JPM Coin, JPMorgan is pioneering blockchain-based payments and exploring tokenized deposits and collateral management.

Galaxy Digital Holdings (founded 2018): A diversified digital asset firm providing tokenization, custody, and trading infrastructure, supporting institutional blockchain adoption.

These firms, amongst the 30 firms tracked by TOKN’s underlying Mirae Asset Stablecoins and Tokenization Index, represent the convergence of finance and technology, translating blockchain theory into real-world business solutions that harness the stablecoin and tokenization ecosystems.

By offering diversified exposure across the cryptocurrency ecosystem, TOKN allows investors to participate in one of the fastest-growing areas of financial innovation through a transparent, diversified ETF structure.

¹ Plus applicable sales tax

Some reasons to consider TOKN:

The convergence of blockchain technology and traditional finance continues to evolve. Tokenization is gaining attention as a way to represent and manage ownership of assets more efficiently, with stablecoins increasingly serving as a supporting infrastructure for settlement and liquidity within tokenized markets. As regulators refine frameworks and institutions adopt blockchain infrastructure, investors stand at the threshold of a new era of digital finance. For those seeking a diversified entry point, TOKN bridges code and capital, capturing the growth of a financial system where innovation and stability can coexist.

NOTE: Blockchain is a relatively new, evolving technology, and some risks may only emerge as adoption grows. It can be vulnerable to security breaches, fraud, regulatory changes, and inconsistent rules across jurisdictions, which could affect its development and use. Although many companies are associated with blockchain, their valuations may be driven by other activities, and there is no guarantee that they will achieve broad adoption or deliver meaningful economic benefits.

TOKN – Global X Tokenization Ecosystem Index ETF

¹ Bloomberg News as at October 25, 2025, Stablecoin Use for Payments Jumps 70%.
² Reuters as at June 17, 2025, US Senate passes stablecoin bill in milestone for crypto industry.
³ White House Fact Sheet, July 18, 2025.
⁴ McKinsey, June 20, 2024, From ripples to waves: the transformational power of tokenizing assets.
⁵ Bloomberg News as at October 25, 2025 – “Stablecoin Use for Payments Jumps 70%.”

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Published January 22, 2026.