Fund tokenization has a plethora of potential benefits including major cost savings and increased revenue, according to a report by Calastone.
The asset management industry could save an estimated $135.3 billion as a result of tokenization, according to a report by global funds network Calastone.
In addition, a more competitive trading expense ratio could improve profitability by $3.1 million to $4.9 million for the average fund with an increased estimated revenue of $1.4 million to $4.2 million. Fund launches could accelerate from 12 weeks to three weeks. Seed funding requirements could also shrink from the current level of $50.3 million by 24 percent or $12.2 million.
The report is based on a survey of 26 global asset managers across the UK, Europe, Asia, and the US. It examines the economic impact of tokenization across key fund structures, including US (40 Act) funds, UK funds, UCITS funds and Singapore VCC funds.
