Broadridge Survey: Tokenized Assets a Strategic Priority for Financial Firms

Tokenization is moving beyond a future concept and is now considered a strategic priority by financial institutions preparing for a market where digital and traditional assets will operate side-by-side. Broadridge Financial Solutions' inaugural "Tokenization Pulse Survey" indicates firms are shifting from exploration to implementation phases, anticipating tokenization's impact on products, workflows, and markets.

The survey found that 84% of firms view tokenization as strategically important. Additionally, 68% believe it will reshape financial markets to some extent within the next three to five years. A significant majority, 92%, anticipate that digital and traditional assets will coexist for the foreseeable future.

Plan to hybridize infrastructure are prevalent, with 69% of firms opting for this approach over building entirely separate systems. Nearly one-third of these firms intend to increase their tokenization investments by 26% to 50% or more over the next two years.

Capital Markets Lead Adoption, Funds Expected to Grow

Capital markets firms are identified as leaders in tokenization implementation. Asset and wealth managers are still developing their capabilities and evaluating operating models. Public market funds, such as tokenized mutual and money market funds, are expected to see significant adoption within five years, with 80% of respondents anticipating their growing role. Tokenization of equities is projected to be slower, with only half expecting substantial progress in that area over the same period.

"There is clear recognition across the industry that tokenization has the potential to reshape how assets are issued, traded, financed, and serviced," said German Soto Sanchez and Mark Nichols, Co-Presidents of Digital Assets at Broadridge. The survey findings highlight the opportunities and challenges firms face in connecting digital and traditional assets and building efficient, trusted markets.