Tokenization is gradually consolidating itself as one of the main axes of transformation of financial markets. After several years dedicated to experiments around blockchain, many institutions appear to be preparing for a larger scale implementation. A new survey conducted by Broadridge of 200 North American executives illustrates this evolution. The results show that financial actors increasingly consider tokenized assets as an element expected to be integrated into market infrastructures, rather than a simple innovation in the testing phase.
Tokenization becomes a strategic axis for financial institutions
Tokenization is now high on Wall Street’s priorities. According to a investigation conducted by Broadridge, 84% of the financial institutions surveyed consider this technology important for their activities. This result reflects a change of direction after several years dedicated to blockchain experiments. Financial institutions now appear 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 registered on a blockchain. This approach can affect stocks, bonds, mutual funds, or even real estate. Proponents of the technology say it can simplify deals, reduce operating costs and enable seamless trade. It also makes it easier to divide assets to make them accessible in smaller units.
This dynamic has been strengthened in the last two years with the launch of several important initiatives. BlackRock has developed a blockchain-based Treasury fund, while Franklin Templeton already offers tokenized money market funds. JPMorgan also continues to expand its settlement services through its Kinexys platform. At the same time, Visa and DTCC are developing infrastructure aimed at supporting the use of tokenized assets in financial markets.
Financial markets prepare for gradual adoption
The survey results show that this development goes beyond the pilot projects. Wednesday, DTCC completed its first live transactions with tokenized securitiesan important step towards the integration of this technology in 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 an increase in tokenization in the coming years. Many also plan to strengthen their investments to support this development and gradually integrate this technology into their activities.
The main lessons from the research are the following:
- 68% of executives believe 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 completely 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 that already exist.
Adoption remains uneven across financial sectors
Despite this growing interest, the adoption of tokenization remains very different across financial professions. Companies specialized in capital markets seem to be the most advanced. 44% of them say they are already operating initiatives in production or implemented at scale. In contrast, only 20% of asset managers and 9% of wealth managers show a comparable level.
IThe survey also identifies segments that could see the fastest growth.. About 80% of respondents believe that tokenized mutual funds and money market funds will play an important role within five years. This outlook is part of the Treasury’s continued development of blockchain-based products. In contrast, only half of respondents expect comparable adoption of tokenized stocks over the same period.
These differences show that the pace of integration varies depending on the asset categories and economic models of financial institutions. Companies prefer areas where operational benefits seem more 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 to what extent tokenized assets will be able to establish themselves in the daily organization of the markets.
Source: Cointribune
