CoinDesk
Tokenization is now a strategic priority for 84% of financial institutions surveyed by Broadridge, signaling a shift from blockchain experiments toward production infrastructure. The survey covered 200 North American financial services executives, with 68% expecting tokenization to at least partially reshape markets within three to five years. Another 92% expect digital and traditional assets to coexist, while 69% plan to integrate tokenization into existing systems.
Tokenization represents ownership of real-world assets such as bonds, funds, stocks and real estate as blockchain-based digital tokens. Financial firms see potential for faster settlement, lower operating costs, round-the-clock trading and fractional ownership.
Why it matters
Wall Street is favoring hybrid markets rather than attempting to replace traditional finance with entirely onchain systems. That approach connects blockchain networks to established trading, custody and settlement infrastructure, reducing the operational disruption required for adoption.
Major institutions are already advancing this model. BlackRock and Franklin Templeton offer tokenized funds, JPMorgan operates blockchain-based settlement through Kinexys, and Visa and DTCC are developing infrastructure for tokenized payments and securities. DTCC also completed its first live production trades involving tokenized securities.
Market impact
Capital markets firms are furthest ahead, with 44% reporting tokenization initiatives in production or operating at scale. That compares with 20% of asset managers and 9% of wealth managers. Nearly one-third of respondents plan to raise tokenization investment by 26% to 50% or more over the next two years.
Funds appear positioned to lead adoption. About 80% expect tokenized mutual funds and money market funds to play a meaningful role within five years, while only about half expect comparable adoption for tokenized equities. Regulatory uncertainty and the complexity of connecting blockchain technology with existing systems remain the leading obstacles.
Frequently asked questions
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Why are financial firms favoring hybrid tokenization systems?
Hybrid systems let firms connect blockchain networks with established trading, custody and settlement infrastructure. In the survey, 92% expected digital and traditional assets to coexist.
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Which parts of finance are furthest ahead on tokenization?
Capital markets firms lead adoption, with 44% reporting initiatives in production or operating at scale. That compares with 20% of asset managers and 9% of wealth managers.
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Which tokenized products are expected to gain traction first?
About 80% of respondents expect tokenized mutual funds and money market funds to play a meaningful role within five years. Only about half expect similar adoption for tokenized equities.
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How much are firms planning to increase tokenization investment?
Nearly one-third of surveyed firms plan to increase investment in tokenization projects by 26% to 50% or more over the next two years.
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What is slowing institutional tokenization adoption?
Regulatory uncertainty was the most commonly cited obstacle. Firms also identified the operational complexity of integrating blockchain technology with existing financial systems.
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