Tokenization Emerges as Core Wall Street Strategy, 84% of Firms Say It Matters

Tokenized securities are becoming a core strategy for Wall Street financial institutions, a survey showed.

CoinDesk reported on July 18 that a Broadridge survey of 200 financial-services executives in North America found 84% of respondents view real-world asset tokenization, or RWA, as an important technology for their business.

Some 68% said tokenization will reshape at least part of financial markets over the next three to five years. About one-third said they plan to increase investment in tokenization projects by 26% to 50% or more over the next two years.

Tokenization converts ownership of real-world assets such as stocks, bonds, funds and real estate into blockchain-based digital tokens. The technology can simplify settlement and clearing, reduce operating costs, enable 24-hour trading and allow fractional investing.

Still, the financial industry expects blockchain technology to develop alongside the existing financial system rather than replace it entirely. Some 92% of respondents said digital assets and traditional financial assets will operate side by side for the time being. Another 69% said they plan to integrate tokenization into existing financial infrastructure rather than build separate blockchain-only systems.

Adoption varied by sector. Among capital-markets firms, 44% said they have already commercialized tokenization businesses or entered large-scale operations. The figure was 20% for asset managers and 9% for wealth managers.

Tokenized mutual funds and money-market funds were identified as the areas likely to expand fastest. About 80% of respondents said those products will play a meaningful role in financial markets within the next five years.

Broadridge cited regulatory uncertainty as the biggest obstacle to broader tokenization adoption. It also pointed to operational complexity in connecting legacy financial systems with blockchain networks as a major challenge.