Do Fintech, Tokenization, and Blockchain Capabilities Matter for Sustainable Investment? Evidence from a Cross-Country Analysis

This study investigates how blockchain-related capabilities; digital infrastructure, regulatory readiness, fintech adoption, and tokenization; affect sustainable investment across countries. Though blockchain and fintech are increasingly positioned as enablers of sustainability, empirical cross-country insights remain limited. Using a balanced panel of 27 developed and emerging economies from 2017 to 2024, this study applies fixed-effects panel regression and cluster analysis to examine the association between digital financial innovation and sustainable investment size. The results reveal that digital infrastructure and fintech adoption are consistently and positively associated with sustainable investment, underscoring the role of technological readiness and innovation ecosystems in scaling ESG finance. Conversely, regulatory readiness and tokenization adoption show statistically significant but negative associations, reflecting transitional frictions and institutional adjustment costs during early adoption phases. Cluster analysis identifies three distinct country groups; leaders, followers, and laggards; based on blockchain and tokenization readiness, revealing heterogeneous development patterns. These findings suggest that blockchain’s role in sustainable finance is contingent on broader institutional and digital contexts. The study contributes to the sustainable finance literature by integrating tokenization into ESG investment analysis and highlighting the structural conditions necessary for blockchain-enabled finance to succeed. Policy implications emphasize the need for supportive digital infrastructure, adaptive regulation, and integrated fintech strategies to realize the sustainability potential of emerging financial technologies.