Tokenization is gradually establishing itself as one of the main axes of transformation of financial markets. After several years dedicated to experiments around blockchain, many institutions now seem to be preparing for deployment on a larger scale. A new survey of 200 North American executives conducted by Broadridge illustrates this evolution. The results show that financial players increasingly consider tokenized assets as an element expected to be integrated into market infrastructures, rather than a simple innovation in the testing phase.
In brief
- 84% of financial institutions now consider tokenization as a strategic technology for their activities.
- 68% of executives surveyed believe that tokenization will transform financial markets within three to five years.
- Nearly a third of companies plan to increase their investments in tokenization projects over the next two years.
- 92% of respondents anticipate a sustainable coexistence between traditional assets and tokenized assets.
- DTCC has carried out its first live transactions in tokenized securities, marking a new step in the integration of blockchain into financial markets.
Tokenization becomes a strategic axis for financial institutions
Tokenization now occupies an important place in Wall Street’s priorities. According to a investigation carried out by Broadridge, 84% of financial institutions surveyed consider this technology important to their activities. This result reflects a change of direction after several years dedicated to blockchain experiments. Financial institutions now seem to be preparing for a more concrete integration of tokenized assets into their operations.
Tokenization involves representing ownership of real assets in the form of digital tokens recorded on a blockchain. This approach can concern stocks, bonds, investment funds or even real estate. Proponents of the technology say it can simplify settlements, reduce operational costs and enable seamless trading. It also makes it easier to split assets to make them accessible in smaller units.
This dynamic has been strengthened over the past two years with the launch of several major initiatives. BlackRock has developed a blockchain-based Treasury fund, while Franklin Templeton already offers tokenized money market funds. JPMorgan is also continuing to expand its settlement services through its Kinexys platform. At the same time, Visa and DTCC are developing infrastructures intended to support the use of tokenized assets in financial markets.
Financial markets prepare for gradual adoption
The survey results show that this development now goes beyond pilot projects. Wednesday, DTCC completed its first live transactions involving tokenized securitiesan important step towards the integration of this technology into traditional markets. This event illustrates the sector’s desire to bring blockchain infrastructures closer to existing financial systems.
Furthermore, the survey shows that financial institutions expect a rise in tokenization over the coming years. Many also plan to strengthen their investments in order to support this development and gradually integrate this technology into their activities.
The main lessons from the investigation are as follows:
- 68% of executives believe that tokenization will transform at least part of financial markets within three to five years;
- 26% to 50% or more: increase in investments planned by almost a third of companies in tokenization projects over the next two years;
- 92% of respondents anticipate a sustainable coexistence between digital assets and traditional assets;
- 69% want to integrate tokenization into their existing infrastructure rather than developing entirely separate blockchain systems.
These figures illustrate a common strategy within the sector. Companies are favoring a gradual integration of blockchain into their current platforms rather than a complete replacement of their infrastructures. This approach allows them to modernize their operations while maintaining the systems already in place.
Adoption still uneven across financial sectors
Despite this growing interest, the adoption of tokenization remains very different depending on the financial professions. Companies specializing in capital markets appear to be the most advanced. 44% of them say they are already operating initiatives in production or deployed on a large scale. Conversely, only 20% of asset managers and 9% of wealth managers display a comparable level.
L’survey also identifies segments that could see the fastest growth. Around 80% of respondents believe that tokenized mutual funds and money market funds will play an important role within five years. This perspective is part of the continued development of Treasury products based on blockchain. In contrast, only half of respondents expect comparable adoption for tokenized stocks over this same period.
These differences show that the pace of integration varies according to the asset categories and the economic models of financial institutions. Companies favor areas where operational benefits appear the most immediate. They also continue to connect blockchain networks to their existing trading, custody and settlement systems. This progressive approach supports the rise of tokenized assets while limiting structural changes.
The results of this survey show that tokenization and tokenized assets are entering a new phase of development within financial markets. Institutions favor gradual integration into existing infrastructure while strengthening their investments. If this trajectory is confirmed, the coming years will allow us to measure the extent to which tokenized assets will be able to establish themselves in the daily organization of the markets.
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
