S&P Dow Jones Eyes Tokenized Indexes for Exchanges and DeFi

S&P Dow Jones Indices (S&P DJI), one of the world’s most recognized index providers, is exploring tokenization of its benchmarks to bridge traditional finance and decentralized finance.

• S&P DJI is in talks with exchanges, custodians, and DeFi protocols to launch tokenized indexes.
• The firm already partnered with Centrifuge to tokenize the S&P 500 earlier this year.
• Tokenized products could increase accessibility, reduce barriers, and enhance cross-border liquidity.
• Other benchmarks like the Dow Jones Industrial Average may also be tokenized in the future.
• S&P expects tokenized indexes to be pivotal by 2030, supporting both retail and institutional adoption.

S&P Dow Jones Indices (S&P DJI) is taking its first major steps into blockchain by exploring partnerships with leading exchanges, custodians, and DeFi protocols to bring tokenized versions of its most popular benchmarks to market.

Stephanie Rowton, the firm’s director of U.S. equities, emphasized that the company is adopting a strategic approach, ensuring that any tokenized products are launched only on platforms that uphold strong transparency, regulatory, and security standards.

The move reflects a growing institutional interest in tokenized financial products. Earlier this year, S&P DJI allowed the S&P 500 index to be used in a tokenization initiative with Centrifuge, which offered programmable index-tracking funds powered by smart contracts. According to Rowton, this collaboration sparked “a noticeable uptick in engagement” from both traditional finance and decentralized finance participants.

Rowton believes tokenization could bridge TradFi and DeFi, transforming market access for a new generation of investors. Digital-native traders and institutions seeking diversification are showing the strongest interest, particularly in Europe, Asia, and Latin America. Beyond the S&P 500, S&P DJI is also evaluating the tokenization of other benchmarks, including the Dow Jones Industrial Average and thematic indexes.

Global RWA market overview. Source: RWA.xyz

Looking ahead, S&P DJI projects tokenized indexes to become pivotal in global markets by 2030. They could expand liquidity, lower barriers to entry, and unlock new strategies such as fractional ownership and automated DeFi-enabled trading. Importantly, Rowton stressed that tokenization is not a threat to S&P’s traditional business model but rather a complementary innovation that broadens index investing access while preserving benchmark integrity.

The momentum behind tokenized financial assets is growing rapidly. As of July, blockchain-based financial products had a market cap of $370 million. Meanwhile, institutions like OpenEden and BNY Mellon are already advancing tokenized treasury funds, showing how fast the tokenized asset market is evolving.

Final Thought

S&P DJI’s tokenization plans highlight how legacy financial institutions are embracing blockchain to stay ahead of shifting market demand. With benchmarks like the S&P 500 and Dow Jones potentially moving on-chain, the next decade could see tokenized indexes become a mainstream investment vehicle, reshaping how both retail and institutional investors access global markets.