Tokenization is moving from theory to practice. As digitalization reshapes asset management, distributed ledger technology (DLT) is creating new ways to issue, distribute, settle, and safeguard funds and their underlying assets.

In this whitepaper, we explore how tokenization could streamline operations, reshape parts of the value chain, and potentially challenge long-held assumptions about the role of investment funds. Beyond efficiency gains, the technology raises bigger strategic questions about ownership, infrastructure, governance, and where value will be created in the future.

Key takeaways

• Tokenization offers significant potential to reduce costs and improve operational efficiency, helping firms protect margins in an increasingly competitive market.

• Beyond efficiency gains, tokenization could fundamentally reshape fund operating models by enabling more integrated, transparent, and near real-time processes.

• Tokenization may also expand distribution opportunities, allowing asset managers to reach investors through new digital platforms and ecosystems beyond traditional intermediary networks.

• Adoption is expected to be gradual, with traditional and tokenized models coexisting for the foreseeable future.

Over the longer term, tokenization could potentially challenge long-held assumptions about the structure of investment funds and the role they play within the financial system.

Read the full research to understand what these changes could mean for asset managers and the wider investment ecosystem.

Topics in scope 

This paper critically examines the following areas: