Tokenization Market Report 2026

The tokenization market size has grown exponentially in recent years. It will grow from $4.1 billion in 2025 to $5.19 billion in 2026 at a compound annual growth rate (CAGR) of 26.4%. The growth in the historic period can be attributed to rising digital payment adoption, increasing data breach incidents, expansion of regulatory compliance requirements, growth in online commerce platforms, increasing use of cloud-based data systems.

The tokenization market size is expected to see exponential growth in the next few years. It will grow to $13.2 billion in 2030 at a compound annual growth rate (CAGR) of 26.3%. The growth in the forecast period can be attributed to increasing adoption of zero trust security models, rising demand for privacy-preserving technologies, expansion of tokenization across non-payment data, growing investments in cybersecurity infrastructure, increasing use of tokenization in multi-cloud environments. Major trends in the forecast period include increasing adoption of payment tokenization solutions, rising demand for data security and privacy protection, growing integration of tokenization in cloud environments, expansion of compliance-driven tokenization use cases, enhanced focus on identity and access protection.

The growing adoption of digital and contactless payments is anticipated to boost the tokenization market throughout the forecast period. Tokenization enhances data security by substituting sensitive information with a non-significant value that maintains the same format and length as the original data. Compared to encryption, card tokenization offers greater security since it eliminates the need for a cryptographic key, relying instead on a secure mapping system that cannot be easily cracked during an attack. The rise in digital payment usage leads to increased demand for payment security, thereby propelling the tokenization market. For example, in September 2024, Clearly Payments Inc., a payment processing company based in Canada, reported that the United Kingdom witnessed a remarkable rise in transactions in 2023, reaching 18.3 billion, primarily due to the extensive use of contactless cards and mobile payments. Additionally, Australia experienced steady growth in transactions, increasing from 2.5 billion to 5.5 billion, highlighting the country’s strong digital payment infrastructure. Consequently, the ongoing shift towards digital payments is expected to drive the tokenization market forward.

Key players in the tokenization market are prioritizing the development of intelligent solutions by incorporating cutting-edge technologies into their tokenization services. Integrating advanced technologies in this market segment not only bolsters security measures but also ensures compliance and flexibility in navigating evolving digital transaction landscapes. For example, in October 2023, JPMorgan Chase & Co, a multinational financial services firm based in the US, launched a Blockchain-Based Tokenization Service, dedicating a specialized team to craft and commercialize blockchain-driven solutions. This team focuses on rapid prototyping and deployment methods, delivering services such as digital applications on a tokenization platform, customized use cases, and product development across diverse sectors. Additionally, Onyx tested the world's maiden bank-led tokenized value transfer in space, signifying a commitment to exploring innovative applications merging blockchain and the Internet of Things.

In October 2023, Fireblocks, a US-based firm known for offering secure custody, settlement, and tokenization solutions for institutional investors, acquired BlockFold for an undisclosed amount. This acquisition strengthens Fireblocks' tokenization capabilities, enabling users to explore this technology more extensively. The integration introduces a comprehensive service layer that encompasses advisory services, token customization, orchestration, and distribution through the Fireblocks Network. BlockFold, based in Australia, specializes in smart contract development and consulting, with a focus on tokenization.

Major companies operating in the tokenization market include American Express Company, Visa Inc., Mastercard Inc., Fiserv Inc., Entrust Corporation, Thales Defense & Security Inc., Sygnum Bank AG, Bluefin Payment Systems LLC, AsiaPay Limited, Futurex Industries Pvt Ltd., TokenEx Inc., Unicsoft Inc., TokenSoft Inc., MeaWallet AS, Inveniam Capital Partners Inc., Smart Token Labs, Apex India Pvt Ltd., Mt Pelerin AG, Blockchain App Factory, Token Minds Co, Boosty Labs, K20 Fund LLC, Securitize Inc., DigiShares ApS, Stably Inc., CipherCloud Inc., Hst Global Services Private Limited, Intelliblock Technologies Private Limited

North America was the largest region in the tokenization market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tokenization market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tokenization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tokenization market includes revenues earned by entities by providing services such as Vaultless tokenization, vault tokenization, NLP tokenization, NFT tokenization, and governance tokenization. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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