You’ve probably heard the expression, “First very slowly, then all at once.” When it comes to living in a tokenized world—one in which banks and governments create a new monetary system by putting assets on the blockchain—we may be nearing the end of the “very slowly” phase. And according to a new IBM Institute for Business Value report, 2026 Global Outlook for Banking and Financial Markets: Banking in the Tokenized Economy, the “all at once” moment could be rapidly approaching.

By Euny Hong , Staff Writer, IBM Think

“By 2030, tokenized assets, stablecoins and central bank digital currencies (CBDCs) won’t be experimental,” wrote report author Shanker Ramamurthy, Global Managing Partner of Banking and Financial Markets at IBM Consulting. “They’ll be table stakes.”

What is tokenization?

Tokenization, a core pillar of decentralized finance (DeFi), gives financial institutions capabilities the traditional monetary system cannot. As the report notes, “Tokenization enables the instantaneous transfer of assets and value anywhere, including across borders, at any time and at a fraction of traditional costs.”

Because on-chain transactions are recorded on an immutable shared ledger, they offer built-in transparency and reduce reliance on slow intermediaries to establish trust. That decreased friction can mean lower cost. Still, Ramamurthy cautions that tokenization “does not replace the essential safeguards required for secure asset movement.” Instead, he explains that it can strengthen fraud detection, compliance with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) rules, tax handling, privacy protections and alignment with regulatory standards across borders.

“Tokenization” may still bring to mind Bitcoin, NFTs and Guy Fawkes masks, but DeFi of the future looks very different. In many cases, the coin of the realm will be the stablecoin: a digital currency pegged to a real-world asset such as the US dollar. On-chain finance also enables smart contracts—pre-determined rules that if certain conditions are met, this triggers specific actions with the funds. In effect, money becomes programmable.

The report noted, for example, that retail banks can execute real estate purchases and cross-border settlements without the slow escrow process by pre-programming a smart contract to release funds when, for example, a property’s title insurance clears. The report explains how all manner of financial institutions can leverage tokenization, be they retail, commercial or corporate banks; asset managers; or payment networks.

What happens when tokenization meets AI?

Agentic AI goes hand in hand with tokenization; in fact, it accelerates it, according to the report. “AI enables digital barter, automated portfolio rebalancing and peer-to-peer exchanges without traditional currency,” wrote Ramamurthy. “This unlocks new monetization and engagement opportunities, making custodians active orchestrators of value flows at the center of tokenized finance.”

Smart contracts also allow banks to offer fractional ownership to their clients—i.e., breaking down illiquid or hard-to-divide assets like real estate and even Picassos into smaller bits, thereby creating brand-new asset classes and making it easier for ordinary people to become investors.

Read the report for a detailed checklist on preparing your financial institution for a tokenized future.