JPMorgan Criticizes Tokenization Hype as Institutional Adoption Lags

JPMorgan analysts have dismissed the growing enthusiasm around asset tokenization, calling its institutional progress "disappointing." Despite crypto-native firms driving much of the hype, traditional financial institutions remain hesitant to adopt the technology at scale.

Nikolaos Panigirtzoglou, a JPMorgan Chase analyst, noted in a recent report that tokenized bank deposits on blockchains have yet to gain traction. While projects like BlackRock's BUIDL and Broadridge's DLR platform show promise in efficiency, they lack the necessary scale to disrupt traditional systems.

The report highlights a growing divide between fintech-driven settlement improvements and blockchain's slower pace of adoption. As the SEC advances its Project crypto initiative, the gap between hype and reality in tokenization remains stark.