Tokenization Establishes Itself as the Next Major Project in Finance

Tokenization is gradually establishing itself as one of the main axes of transformation in financial markets. After several years dedicated to experiments around blockchain, many institutions now seem to be preparing for a larger-scale deployment. A new survey conducted by Broadridge among 200 North American executives illustrates this evolution. The results show that financial players increasingly view tokenized assets as an element set to integrate into market infrastructures, rather than a mere innovation in the testing phase.

Tokenization Becomes a Strategic Axis for Financial Institutions

Tokenization now holds an important place in the priorities of Wall Street. According to a survey conducted by Broadridge, 84% of financial institutions interviewed consider this technology important for their activities. This result reflects a shift after several years dedicated to blockchain experiments. Financial institutions now seem to be preparing a more concrete integration of tokenized assets into their operations.

Tokenization involves representing ownership of real assets in the form of digital tokens recorded on a blockchain. This approach can concern stocks, bonds, investment funds, or real estate. Proponents of this technology believe it can simplify settlements, reduce operational costs, and allow continuous exchanges. It also facilitates the splitting of assets to make them accessible in smaller units.

This dynamic has strengthened over the past two years with the launch of several major initiatives. BlackRock has developed a blockchain-based Treasury fund, while Franklin Templeton already offers tokenized money market funds. JPMorgan continues to expand its settlement services via its Kinexys platform. At the same time, Visa and DTCC are developing infrastructures to support the use of tokenized assets in financial markets.

Financial Markets Prepare for Gradual Adoption

The survey results show that this evolution now goes beyond pilot projects. On Wednesday, DTCC conducted its first live transactions involving tokenized securities, an important step toward integrating this technology into traditional markets. This event illustrates the sector’s willingness to bring blockchain infrastructures closer to existing financial systems.

Moreover, the survey shows that financial institutions expect tokenization to grow in the coming years. Many also plan to increase their investments to support this evolution and gradually integrate this technology into their activities.

The main findings of the survey are as follows:

• 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 nearly one-third of companies in tokenization projects over the next two years.
• 92% of respondents anticipate a lasting coexistence between digital assets and traditional assets.
• 69% wish to integrate tokenization into their existing infrastructures rather than develop entirely separate blockchain systems.

These figures illustrate a common strategy within the sector. Companies favor a gradual integration of the blockchain into their current platforms rather than a complete replacement of their infrastructures. This approach allows them to modernize their operations while retaining their existing systems.

Uneven Adoption According to Financial Sectors

Despite this growing interest, the adoption of tokenization remains very different depending on finance sectors. Companies specialized in capital markets appear the most advanced. 44% of them already report operating initiatives in production or deployed at large scale. In contrast, only 20% of asset managers and 9% of wealth managers show a comparable level.

The survey also identifies the segments most likely to experience the fastest progress. About 80% of respondents believe tokenized mutual funds and money market funds will play an important role within five years. This outlook builds on the development of blockchain-based Treasury products. On the other hand, only half of respondents expect comparable adoption for tokenized stocks over the same period.

These discrepancies show that the pace of integration varies according to asset categories and financial institutions’ business models. Companies focus on areas where operational benefits appear most immediate. They also continue connecting blockchain networks to their existing trading, custody, and settlement systems. This gradual approach supports the growth of tokenized assets while limiting structural changes.

The survey results thus show that tokenization and tokenized assets are entering a new development phase within financial markets. Institutions favor a gradual integration into existing infrastructures while increasing their investments. If this trajectory continues, the next years will measure to what extent tokenized assets can establish themselves in the daily organization of markets.