Dow Jones Index Tokenization: S&P 500 Tests the Waters While Dow Jones Industrial Average Follows Closely Behind

08/18/2025

Recent Surge of “Stock Tokenization”

Recently, the “stock tokenization” trend has swept across the globe, with companies like Robinhood and Kraken launching such products. Naturally, traditional financial institutions also want to ride this wave. S&P Dow Jones Indices (S&P DJI) plans to tokenize its indices, including the S&P 500 and the Dow Jones Industrial Average (DJIA).

S&P DJI Actively Enters the Blockchain Market

According to reports, Stephanie Rowton, Director of U.S. Equities at S&P DJI, stated that the company is in discussions with major exchanges, custodians, and DeFi protocols to launch tokenized versions of its indices. She emphasized that S&P will adopt a strategic approach, choosing to launch products only on platforms that are “highly transparent, secure, and compliant.”

Rowton added that through these partnerships, the aim is to build a robust infrastructure to support the trading and circulation of tokenized indices, enhancing the user experience for investors.

Testing with the S&P 500

In fact, S&P DJI announced at the RWA Summit in Cannes, France, in July of this year, a collaboration with tokenization infrastructure provider Centrifuge, UK asset manager Janus Henderson, and on-chain asset manager Anemoy Capital to jointly launch the first tokenized S&P 500 index fund (Janus Henderson Anemoy S&P 500 Index Fund Segregated Portfolio), pending regulatory approval.

Left: Image from the summit captured by the co-founder of Centrifuge; Right: Collaboration between Centrifuge and S&P DJI

The core features of this index fund include:

Proof-of-Index Technology Verification: Ensures that on-chain data is consistent with the official S&P data, preventing fake data or unauthorized content.
Built on the Centrifuge Blockchain: Underlying infrastructure provided by Centrifuge, specifically designed for asset tokenization and DeFi scenarios.
Authorized Data Sources: The fund directly utilizes the index data published daily by S&P.
Smart Contract Tracking: The fund uses smart contracts to automatically track the performance of the S&P 500 index, ensuring compliance.
Compatible with TradFi and DeFi: Seamlessly connects traditional finance with on-chain markets.

Becoming a Bridge Between TradFi and DeFi, Tokenizing More Indices

Rowton believes that blockchain has “transformative potential” in financial markets. As demand for digital assets increases, tokenization is likely to serve as a bridge between traditional finance and DeFi. She added that S&P’s tokenization strategy is aimed at meeting the demands of the “new generation of investors,” who wish to engage with core indices of traditional finance in more innovative and novel ways, with the highest demand currently coming from Europe, Asia, and Latin America.

Rowton also revealed that S&P is evaluating the possibility of tokenizing other indices, including the Dow Jones Industrial Average (DJIA) and even some thematic indices.

She stated that different groups of investors have varying preferences for different indices, and S&P will respond according to market demand.

Vision for 2030: Tokenized Indices Will Become Market Core

Rowton predicts that tokenized indices will become a “key player” in the global market by 2030, as they can enhance cross-border market accessibility and liquidity and lower the barriers to traditional investments. At the same time, they will expand new investment functionalities, such as fractional investments or automated trading via smart contracts.

However, she also emphasized that tokenization will not replace S&P’s existing licensing business but will be a form of “complementary innovation” that can create more business opportunities and attract new investors without compromising the integrity of the original indices. Data shows that by August 2025, the global RWA tokenization market is expected to exceed $26 billion, indicating that this “tokenization” trend is accelerating.

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