Deutsche expects the market for tokenised financial assets to reach between $3 trillion and $4 trillion by 2035, more than 100 times its size last year.
The market stood at about $25 billion in 2025.
What is tokenisation?
Tokenisation means recording ownership of an asset, such as a bond, fund share or property, as a digital token on a blockchain or similar shared ledger.
The pitch is that assets recorded this way can be traded, settled and moved around faster than through traditional systems.
How big is it now?
Excluding stablecoins, the market has grown from about $10 billion in January 2025 to around $39 billion this month, Deutsche's research institute said in a new report.
The bank's interim forecast puts it at between $1.5 trillion and $2 trillion by 2030.
US government debt is the largest segment, with $15 billion of tokenised Treasuries, much of it held through tokenised money market funds.
BlackRock, the world's largest fund manager, leads that segment with $2.83 billion.
Ondo, a blockchain investment platform, follows on $2.66 billion, with Circle, the stablecoin issuer, close behind at $2.60 billion.
Where do stablecoins fit?
Stablecoins, digital tokens pegged to currencies such as the dollar, still account for about 89% of all tokenised value.
Deutsche counts them separately because they are used mainly for payments and settlement rather than as investments.
Why is the plumbing the story?
The report's authors, Marion Laboure and Camilla Siazon, argue that the next phase depends on market infrastructure rather than the assets themselves.
Put simply, tokens are only useful if the systems that clear and settle trades can handle them.
That shift is already under way.
The Depository Trust & Clearing Corporation (DTCC), which settles most US securities trades, will launch a tokenisation service in October covering Russell 1000 stocks, major exchange-traded funds and Treasuries.
The Securities and Exchange Commission (SEC) has granted the service a three-year authorisation, and more than 30 firms took part in live trades in July.
The New York Stock Exchange plans a tokenised platform offering round-the-clock trading in US shares and funds.
In Europe, the Eurosystem's Pontes project, which links blockchain platforms to central bank settlement systems, is due to go live this month.
How far behind are shares?
Tokenised shares have climbed to nearly $3 billion in value.
That is still less than 1% of traditional stock markets.
What is holding it back?
Regulation is the main drag.
The US Digital Asset Market Clarity Act, which would set rules for how crypto markets are structured, failed a procedural vote this month.
Deutsche Bank thinks that rules out progress until January 2027, pushing attention back to the SEC and the Commodity Futures Trading Commission, the US derivatives regulator.
The GENIUS Act, which creates a federal framework for stablecoins, takes effect by 18 January 2027 at the latest.
Trading is also thin, with many tokenised bonds simply held until they mature.
What are the risks?
The bank flags the danger of faster, run-style withdrawals, where investors pull money out in a rush.
It also warns that money market funds could chase higher returns into riskier assets, and that problems in crypto markets could spread.
Will it replace banks?
Deutsche thinks not. It expects tokenisation to modernise existing financial infrastructure, with a gradual shift onto digital rails rather than a clean break from the banks that run the system today.
