Tokenization has become a strategic priority for 84% of financial firms
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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A recent survey conducted by financial technology provider Broadridge reveals that tokenization has become a strategic priority for 84% of financial institutions in North America. The survey polled 200 financial services executives and indicates the sector is moving beyond experimenting with blockchain, preparing for a future where tokenized assets are integral to market infrastructure. Tokenization refers to representing ownership of real-world assets such as stocks, bonds, funds, or real estate as digital tokens on a blockchain. This technology is seen by proponents as a way to streamline settlement processes, reduce operating costs, enable 24/7 trading, and allow fractional ownership.
The survey shows rising industry momentum, with 68% of respondents believing tokenization will at least partially reshape financial markets within the next three to five years. Almost one-third of firms plan increased investment in tokenization projects of 26% to 50% or more over the next two years. However, most firms favor a hybrid approach, with 92% expecting digital and traditional assets to coexist and 69% aiming to integrate tokenization into existing financial infrastructure rather than build stand-alone blockchain systems. This trend aligns with how major institutions like BlackRock, Franklin Templeton, JPMorgan, Visa, and DTCC are implementing tokenization alongside legacy systems.
Adoption varies by sector, with 44% of capital markets firms reporting tokenization initiatives in full production or at scale, compared to 20% of asset managers and only 9% of wealth managers. Respondents also anticipate tokenized mutual funds and money market funds to grow faster than tokenized equities over the next five years, as evidenced by the expansion of tokenized Treasury products. Despite this enthusiasm, regulatory uncertainty remains the most frequently cited challenge, followed by the complexity of integrating blockchain technology into existing financial operations, which continues to temper adoption.