BlackRock Sees Ethereum Leading Tokenization in 2026 — What It Means for ETH

Ethereum is back in focus after BlackRock identified it as the blockchain most likely to lead the tokenisation of real world assets by 2026. The prediction comes at a time when Ethereum’s price remains well below its previous highs, raising questions about the gap between market performance and long term value. 

BlackRock’s view suggests that infrastructure, not short term price action, may matter most as tokenisation continues to expand. 

Key Takeaways

• Ethereum accounts for roughly 66 percent of all tokenised assets today
• BlackRock expects Ethereum to benefit most from future tokenisation growth
• Institutional adoption continues despite ETH trading below all time highs

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Ethereum’s Dominance in Tokenisation Today

Ethereum currently dominates the tokenisation landscape by a wide margin. BlackRock estimates that around 66 percent of all tokenised assets are built on the Ethereum blockchain, giving it a substantial lead over competing networks.

BNB Chain follows with about 10 percent of the market, while Solana, Arbitrum, Stellar, and Avalanche each hold much smaller shares. Even combined, these networks do not approach Ethereum’s level of adoption in tokenised assets.

This dominance reflects years of steady development. Ethereum offers deep on chain liquidity, a large global user base, and well established infrastructure that supports issuance, trading, and settlement. These qualities are especially important for institutions seeking reliable platforms for large scale tokenisation.

Ethereum is also home to more than half of all stablecoins, reinforcing its role as a core settlement layer for digital finance. BlackRock’s own use of Ethereum for its BUIDL tokenised Treasury product further underlines the network’s institutional credibility.

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Weak Price Performance but Growing Institutional Confidence

Despite its strong position in tokenisation, Ethereum’s price has struggled. ETH is trading near $3,000, almost 40 percent below its all time high, and has underperformed several traditional assets over the past year.

However, price weakness has not deterred major financial institutions. JPMorgan selected Ethereum for its first tokenised money market fund, while Morgan Stanley has filed for an Ethereum exchange traded fund product. These moves signal confidence in Ethereum’s long term role rather than its short term price movements.

Ethereum based ETFs have already attracted billions in assets under management. BlackRock, Grayscale, and Fidelity all report strong inflows into their Ethereum products, suggesting sustained institutional demand.

Digital asset treasury firms are also accumulating and staking ETH. These firms typically take a long term view, and staking reduces the liquid supply of Ethereum, which may influence future price dynamics.

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Tokenisation Within BlackRock’s Broader Outlook

BlackRock’s 2026 outlook places tokenisation alongside other key investment themes, including artificial intelligence and defence. While AI has drawn intense attention in recent years, BlackRock argues that ongoing adoption supports continued growth rather than signalling a speculative bubble.

Tokenisation fits naturally into this framework by improving how assets are created, managed, and distributed. As more real world assets move on chain, the need for secure and neutral settlement layers is likely to increase.

Ethereum’s decentralisation and established infrastructure position it well for this role. BlackRock does not expect a single blockchain to dominate entirely, but it does see Ethereum retaining a leading position similar to Bitcoin’s dominance within its own market.

Ethereum co founder Vitalik Buterin has described the network as civilisational infrastructure, reflecting its ambition to support economic activity at a global scale.

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Conclusion

BlackRock’s outlook highlights Ethereum’s growing importance beyond daily price movements. While ETH has lagged in recent months, its leadership in tokenisation and continued institutional adoption remain clear. 

As real world assets increasingly move on chain, Ethereum is well placed to play a central role in that transition. For long term observers, the focus may shift from short term volatility to the strength of the underlying infrastructure.

FAQ

What does tokenisation mean in crypto

Tokenisation is the process of representing real world assets as digital tokens on a blockchain.

Why does BlackRock believe Ethereum will lead tokenisation

Ethereum offers deep liquidity, mature infrastructure, and the largest ecosystem for tokenised assets.

Is Ethereum still dominant despite its price decline

Yes. Around two thirds of tokenised assets are currently issued on Ethereum.

Are other blockchains competing with Ethereum

Yes. Networks such as Solana and Avalanche are growing but remain smaller in overall market share.

How could tokenisation affect Ethereum long term

Increased tokenisation could strengthen Ethereum’s role as a global financial settlement layer.

Disclaimer: This article is for informational purposes only and does not constitute financial, investment or cybersecurity advice. Readers should conduct independent research and consult professionals before making decisions related to digital assets or security practices.