Tokenized funds hit $9B AUM in Q1 2026, up 181% YoY. On-chain stablecoin market cap reaches $297.6B. Hyperliquid leads Q1 revenue. TradeXYZ RWA perpetuals up 20x.
Tokenized fund assets under management reached $9.0 billion in the first quarter of 2026, a 181% increase from the same quarter a year earlier, according to data from CoinShares and Token Terminal. The total was up 12.6% from the fourth quarter of 2025.
The growth stems from demand for low-risk, yield-bearing products backed by short-duration U.S. Treasury securities. Major issuers include BlackRock, Franklin Templeton, Circle, and Ondo. Nearly half of all tokenized fund issuance takes place on Ethereum, the report said. The push into on-chain products builds on earlier adoption of tokenized equities. Tokenized QQQ products accounted for 288% of July trading volume among a set of tracked funds, AlphaScala previously reported.
Stablecoins, which serve as the on-chain equivalent of dollars for trading and payments and also function as collateral, reached a combined market capitalization of $297.6 billion in Q1, up 37.2% year over year. Tether, Circle, Sky, Ethena, and Paxos hold the largest shares. Ethereum hosts roughly 60% of all stablecoin supply. Other networks, including Tron, Solana, Arbitrum, and Base, continue to expand their stablecoin activity. The stablecoin market's growth has drawn attention from payment networks. Mastercard tested a single-audit compliance model with Borderless.xyz earlier this year.
On-chain businesses – companies that generate revenue directly from trading and lending – produced $587.9 million in revenue during the first quarter. Settlement activity also contributes to revenue, CoinShares said. Hyperliquid captured the largest share among applications tracked in the report. The platform's revenue reflects its dual function as a trading venue and a settlement layer, CoinShares and Token Terminal said. The report described Hyperliquid as unique in capturing value from both exchange activity and its underlying blockchain.
Perpetual futures tied to real-world assets have emerged as a growing segment. tradeXYZ, a venue running on Hyperliquid, has seen trading volumes increase roughly 20-fold since its launch. Demand centers on commodities such as oil and precious metals, along with major equity indexes including the S&P 500 and Nasdaq-100. Technology and semiconductor stocks also see activity in the segment. The growth in RWA perpetuals comes as broader crypto-native derivatives trading has slowed since late 2025, CoinShares said.
The report describes 2026 as a year when hybrid finance moves from a market narrative to a measurable financial system. Tokenized funds and stablecoins now link traditional capital markets with on-chain infrastructure. Further growth will depend on additional institutional product launches and continued stablecoin supply expansion, the report said.
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