Asia, alongside the US, led the world as leaders in the tokenization of investment funds, according to a report by Calastone.
In the US and Asia, 39 percent and 38 percent of firms, respectively, are currently in the process of implementing fund tokenization projects, according to a report by global funds network Calastone. This compares to just 27 percent in the UK and Europe.
Firms engaged in fixed income and private assets were most advanced in their implementation efforts. Cost savings, enhanced liquidity, access to new asset classes and personalized investment experiences were named as the top benefits of fund tokenization. 80 percent cited the lack of a central bank digital currency as the top obstacle, following regulatory uncertainty.
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Within Asia, 86 percent said it would be possible to introduce tokenized offerings to the market in three years, including 61 percent that said it could be done in less than a year.
«Our clients in Asia are not just anticipating the rise of tokenized funds, they are proactively paving the way for it. This survey shows that asset managers in the region […] are gearing up for implementation at an impressive pace with scalable implementations already taking place in product development, distribution and trading,» said Justin Christopher, head of Asia at Calastone.
The report was based on a survey conducted in the third quarter of 2023 in close partnership with trade publication Global Custodian. 80 percent of the survey’s 141 participants were asset managers while the remaining were fund administrators, custodians, and management companies. Respondents were from the US (16 percent), Asia (35 percent) as well as UK and Europe (49 percent).
