INTRODUCTION

Imagine a world where owning a slice of a skyscraper or trading shares in a fine art masterpiece is as simple as buying a stock on your phone. This isn’t science fiction – it’s the promise of tokenisation, a trend rapidly gaining momentum in finance. In mid-2024, the CEO of BlackRock (the world’s largest asset manager) declared that “the next generation of securities will be the tokenisation of securities”, highlighting how blockchain could enable instant, transparent trading and reshape the whole ecosystem. Such bold statements underscore a broader reality: tokenisation and blockchain technology are set to transform financial services globally.

In this article, we’ll break down what tokenisation means and why blockchain is a gamechanger. We’ll explore current trends and discuss how this technology is reshaping areas like asset management, banking, and capital markets. By the end, you’ll see why many experts believe we are on the cusp of a financial revolution, and what opportunities and challenges lie ahead.

TOKENISATION 101: What It Is and How It Works

At its core, tokenisation is the process of converting ownership rights in an asset into a digital token on a blockchain. In simpler terms, it’s like creating a digital share or certificate that represents a real-world asset. This could be a token for a piece of real estate, a fraction of a painting, a share in a company, or any asset with value. Blockchain technology provides the decentralised ledger that tracks these tokens securely. Because blockchains are tamper-resistant and transparent, every token transaction is recorded immutably and can be verified by participants, creating a reliable and shared source of truth.

For example, imagine a property worth $10 million being divided into 10,000 digital tokens; investors from anywhere could buy and trade those tokens, each representing a tiny slice of the property. Blockchain makes this possible by ensuring trust (through an unchangeable record), speed (near-instant transfers), and automation (via smart contracts). An asset transfer that might take days through banks and clearinghouses can potentially settle in seconds on a blockchain, with self-executing code handling tasks like payment distribution or compliance checks. In short, tokenisation allows us to handle assets with the same ease as sending an email – but with the security and verification that traditional finance requires.

KEY BENEFITS OF TOKENISATION

• Greater Liquidity & Accessibility: Tokenisation converts traditionally illiquid assets (like real estate or fine art) into digital units that can be easily traded. Investors can buy fractional shares of high-value assets, lowering entry barriers and democratising access to markets once limited to large players. Tokens can also be traded globally, 24/7, which means a wider pool of buyers and sellers and potentially more liquidity for asset owners.

• EFFICIENCY, Transparency & Security: By cutting out intermediaries and automating processes with smart contracts, blockchain can make transactions faster and cheaper. One analysis estimates that tokenisation could save $20+ billion per year in global settlement costs as it scales up. Every transaction on the blockchain is also recorded on an immutable ledger, providing a clear audit trail and reducing fraud. This transparency and cryptographic security build trust in the system, as participants can independently verify transactions in real time.

GLOBAL TRENDS IN 2025: FROM PILOT PROJECTS TO MAINSTREAM ADOPTION

Tokenisation has rapidly evolved from experiment to mainstream discussion in financial services. In mid-2025, the total value of real-world assets represented on public blockchains is estimated at around $24 billion, marking a growth of nearly 380% in the past three years . Analysts project that this could swell into the tens of trillions over the next decade – for example, a report by Standard Chartered bank forecasts $30 trillion in tokenised assets by 2034. These numbers, while ambitious, reflect a growing consensus that a significant portion of financial markets may migrate to blockchain-based systems in the coming years.

One reason for this optimism is the active involvement of major institutions. Large asset managers and banks across the globe are now investing in tokenisation. BlackRock, for instance, introduced a tokenised money market fund for U.S. Treasuries that quickly grew to about $2.9 billion in assets as of June 2025. On the banking side, JPMorgan Chase made headlines by executing its first tokenised bond trade on a public blockchain network in 2025 – a milestone indicating that even Wall Street’s biggest players are embracing this tech in real transactions . And importantly, regulators in major markets are creating frameworks to support this innovation. The EU, Switzerland, Singapore and others have introduced laws or guidelines recognising digital securities and tokenised assets . Even in the U.S., regulators are working on clearer rules for digital assets to encourage responsible adoption . All these developments point to a clear trend – tokenisation is moving from the fringes into the core of global finance. 2025 has been a tipping point where early trials are turning into full-fledged products and services.

THE ASSET MANAGEMENT REVOLUTION

One sector already feeling the impact of tokenisation is asset and wealth management. In the past year, multiple high-profile firms have rolled out tokenised investment products – from money market funds to private equity offerings. For example, one leading asset manager introduced a tokenised money market fund in Europe, while another opened up a private equity fund to investors via tokens. In one notable case, a large tokenised bond fund reached nearly $3 billion in assets within months of launch. Industry surveys suggest that tokenised funds could become mainstream within the next few years.

Why Are Fund Managers Embracing Tokenisation?

It offers significant advantages for both investors and managers:

• Broader Investor Access: By splitting funds or securities into smaller digital shares, tokenisation lowers minimum investment sizes. This means more people can invest in assets like commercial real estate or private equity that used to have high entry barriers. A retail investor might buy $100 worth of a tokenised fund that normally requires a $100,000 minimum – a game-changer for financial inclusion.

• Liquidity for Illiquid Assets: Investors in tokenised funds could trade their fund tokens on secondary markets without having to wait for quarterly redemption windows or fund maturities. This new liquidity is especially valuable for traditionally illiquid holdings (e.g. real estate, infrastructure projects). Early examples have shown tokenised fund shares being bought and sold peer-to-peer, giving investors flexibility to exit positions much more easily than before.

• Operational Efficiency: Blockchain can streamline administrative tasks for asset managers. Everything from investor onboarding (via digital wallets and automated compliance checks) to dividend distributions can be handled with less paperwork.

Transactions settle faster and record-keeping is simplified by the transparent ledger. Over time, this efficiency could reduce costs related to fund administration and improve accuracy in tracking ownership and transactions.

By leveraging these benefits, asset managers can tap new pools of investors and manage products more efficiently. It’s a powerful combination that is pushing the asset management industry toward a more digitally native model.

BEYOND FUNDS: TOKENISATION ACROSS FINANCE

Tokenisation is not confined to investment funds – it is also permeating other areas of financial services. For instance, blockchain-based stablecoins (digital currencies pegged to fiat money) now enable near-instant, low-cost cross-border payments, and some banks are piloting their own tokenised deposit coins to allow 24/7 money transfers. In capital markets, stock exchanges and issuers have begun to experiment with tokenised bonds and equities, achieving faster (almost instant) trade settlement and even after-hours trading windows . Even hard-to-trade assets like real estate are being brought on-chain; recently, a tokenised property investment in the U.S. raised over $6 million from investors via an online platform . From commodities like gold to receivables in trade finance, virtually any asset class could eventually be represented by tokens – potentially unlocking new liquidity and opportunities across the financial landscape.

CHALLENGES ON THE HORIZON

For all its potential, tokenisation still faces hurdles that the industry must overcome:

• Regulatory Uncertainty: Laws are still catching up to this new model. Clearer guidance is needed, and regulatory clarity remains a top barrier for wider adoption.

• Technology & Integration: Fragmented platforms and high implementation costs make it hard for systems to work together seamlessly. The technology is improving, but common standards and easier-to-use infrastructure are still needed for scale.

• Trust and Adoption: Some investors remain wary of digital assets, often due to past volatility and security concerns. Building confidence through education and proven success stories will be essential to bring more participants on board.

CONCLUSION

Tokenisation and blockchain are no longer just buzzwords – they are quickly becoming integral to the future of finance. The momentum in 2025 makes it clear that it’s no longer a question of if, but how fast traditional finance will adopt these innovations. We can envision a future where

owning and trading assets is as seamless as sending a message, with markets that are more efficient, transparent, and accessible to all. The full transformation will take time and effort, but the direction is set. Finance is being rebuilt, token by token, on blockchain-based rails – and those who embrace this shift stand to benefit in the new era of financial services.

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