Key facts
- 84% of financial institutions view tokenization as a strategic priority.
- Most financial firms anticipate tokenization will significantly reshape markets in 3-5 years.
- 92% of firms expect a hybrid future where digital and traditional assets coexist.
- 69% of firms plan to integrate tokenization into existing infrastructure.
- Capital markets firms are currently leading in tokenization adoption.
- Tokenized mutual funds and money market funds are projected to see greater adoption than tokenized equities.
Tokenization has emerged as a significant strategic priority for the financial industry, with 84% of institutions identifying it as important to their business, according to a survey by Broadridge. The findings suggest a shift from experimentation to preparation for a future where tokenized assets are integrated into market infrastructure.
Tokenization, the process of representing real-world assets as digital tokens on a blockchain, is seen as a way to streamline settlement, reduce operating costs, and enable 24/7 trading and fractional ownership. Major financial players like BlackRock, Franklin Templeton, and JPMorgan have already launched tokenization initiatives, with DTCC recently completing its first live production trades of tokenized securities.
Broadridge's survey indicates that 68% of respondents believe tokenization will reshape financial markets within three to five years, and nearly a third plan to increase investment in tokenization projects. However, firms are not anticipating an entirely digital asset future; 92% expect traditional and digital assets to coexist, and 69% plan to integrate tokenization into existing systems rather than build new blockchain-native ones.
Adoption varies across sectors, with capital markets firms (44%) leading the way, followed by asset managers (20%) and wealth managers (9%). Looking ahead, 80% of respondents believe tokenized mutual funds and money market funds will become significant within five years, surpassing the expected adoption of tokenized equities (around 50%). Key challenges to wider adoption include regulatory uncertainty and the operational complexity of integrating blockchain technology.