One third of the market cap of tokenized funds now sits outside Ethereum and BNB Chain, according to the latest data. The shift marks a notable change for a sector that has long been dominated by those two networks.
The big two lose their grip
For years, Ethereum and BNB Chain were the default homes for tokenized funds. That's still true for the majority, but the growing slice elsewhere suggests issuers are no longer treating them as the only option. The numbers point to a market that's becoming more multi-chain.
What's driving the move
Lower fees and faster settlement are often cited as reasons to look elsewhere, though the data doesn't say which chains are picking up the slack. It could be a mix of layer-2s and other layer-1s. The trend also aligns with a broader push toward tokenizing real-world assets, which brings in issuers who may not have a legacy preference for Ethereum.
Liquidity and interoperability questions
Spreading across chains can fragment liquidity, making it harder for buyers and sellers to find each other. It also puts pressure on bridges and other cross-chain tools to keep up. The tokenized fund market is still young, and how it handles this fragmentation will shape its growth.
For investors, a more spread-out market means more choices and potentially better pricing. For the networks themselves, it's a reminder that dominance isn't permanent. The next few quarters will show whether this is a blip or a lasting shift.
