Growth in decentralized-finance activity and the tokenization of conventional assets remains underwhelming, according to a research note from JPMorgan Chase & Co. strategists led by Nikolaos Panigirtzoglou. The bank estimates the market value of real-world assets represented on blockchains at roughly $25 billion—an amount it describes as “rather insignificant” given the technology’s ambitions. The team attributes the slow uptake to fragmented cross-border regulations, legal uncertainty and limited confidence in smart-contract security, factors that have curbed institutional participation. JPMorgan sees little evidence that banks or their customers are shifting from traditional deposits to blockchain-based alternatives, and secondary trading in tokenized bonds and private assets remains sparse. A handful of traditional financial firms are experimenting with the technology—Fidelity Investments has sought an on-chain share class for a money-market fund, VanEck launched the VBILL tokenized fund, and BlackRock’s digital liquidity fund BUIDL briefly amassed $2.9 billion before slipping to $2.3 billion this week. US regulators are also evaluating the space through the Securities and Exchange Commission’s new “Project Crypto,” but, for now, JPMorgan concludes that institutional investors see limited need for wholesale tokenization.