85% agree that financial service providers who are unprepared for mass tokenisation of assets risk being left behind
More than half (52%) of fund managers have started to focus on tokenisation as institutional interest in the sector starts to build, as revealed by new global research* by tokenisation platform Token City.
The study, conducted among fund managers in France, Spain, Germany, Switzerland and the UK with around $546.5 billion in assets under management, found more than four in five (83%) fund managers agree that the shift into a tokenized economy offers greater potential for a more transparent, open, and fairer financial services industry.
Around 85% of fund managers questioned said they believe financial services providers who are not prepared for mass tokenization of assets risk being left behind.
Token City says most fund managers who are testing the market have very small levels of exposure to Security Tokens, as they are investigating the market in terms of how it works, its infrastructure and liquidity. However, the research for Token City, which provides the platform infrastructure and services for issuing, managing, and trading Security Tokens by investors, investment funds, portfolios, brokers, and other investment service companies, shows interest in the sector is building up.
One in five fund managers (21%) questioned have already invested in some tokenised assets and 73% plan to do so within the next three years. Around 37% say they would consider launching their own investment vehicles investing in tokenised assets within three years, while 47% say they could offer these products within three to five years.
The World Economic Forum estimates ** that up to 10 percent of global GDP will be stored and transacted via DLT by 2027 and that tokenized markets could potentially be worth as much as $24 trillion by 2027.
Token City founder and CEO Yael H. Oaknin said: “Tokenisation of assets is attracting growing interest and the fact that more than half of fund managers have already started assessing the market highlights that. The market is forecasted to grow strongly over the next three years as more investors look at the opportunities offered by tokenisation of assets. Forecasting the future is not an exact science, but it is clear the market is building momentum as investors start to recognise the potential benefits and start to prepare for the expected growth.”
Token City supports funds and investors wanting to evaluate the market in a safe and secure way. It provides the platform infrastructure and comprehensive services required to issue, manage, and trade Security Tokens.
