Fund Tokenisation - Market Activity

Last year we mentioned that Fund Tokenisation could be the next big thing in UK Asset Management and across the globe.

As we move into 2025, what does the landscape look like for Fund Tokenisation?

Let’s look at some headline market activity in this space during the last 6 months…

• Fasanara Capital, a UK-based institutional investment manager has launched its first tokenised money market fund, being hosted on the Polygon public blockchain.
• UK based Fidelity International has tokenised one of its money market funds using JPMorgan’s Onyx Digital Assets blockchain.
• A partnership between digital securities distribution platform Assetera and FCA regulated digital securities exchange Archax will enable investors access to tokenised real-world assets (RWA) in the UK, EU & EEA. The platform will provide access to tokenised money market funds from UK based investment manager Abrdn.
• Janus Henderson Investors partnering with web3 native asset manager Anemoy and RWA tokenisation firm Centrifuge to manage Anemoy’s LTF tokenised fund.
• Germany’s Metzler Asset Management in partnership with Fundsonchain and Cashlink piloted issuing tokenised fund shares.
• Franklin Templeton has received approval from Luxembourg’s regulator CSSF to launch a tokenised UCITS fund to be hosted on a public blockchain.
• Alternatives asset manager Apollo Global has partnered with tokenisation specialist firm Securitize to offer investors a new tokenised private credit fund.
• Blackrock has one of the largest tokenised money market funds – BUIDL. It is available on six blockchains; Ethereum, Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet & Polygon.
• Alternatives investment manager Hamilton Lane has partnered with crowdfunding platform Republic and aims to offer private investors the opportunity to invest in tokenised funds.

The list goes on…

Growth in Fund Tokenisation is on a steep rise – as of late 2024, tokenised funds went past the $2 billion AUM mark with some industry experts citing tokenized funds reaching over $600 billion AUM by 2030.

McKinsey & Company have predicted that tokenised financial assets are tracking to reach a market size of around $2 trillion by 2030 due to increased adoption of tokenisation by mutual funds, exchange traded funds and alternative funds.

Investment industry forward-thinkers will note that the overall key benefits tokenisation affords will outweigh the challenges to adopt. Tokenisation is now firmly here to stay.

This year we may well see the convergence of tokenisation, blockchain technology and traditional finance, creating a transformative shift in the financial ecosystem.

Are you ready to discuss? Contact us at [email protected] to see how we can help.