S&P Dow Jones Indices Considers Listing Tokenized Indices on Exchanges and DeFi Platforms

Global index provider S&P Dow Jones Indices (S&P DJI) is reportedly in discussions to list tokenized indices on major exchanges, custody firms, and decentralized finance (DeFi) protocols.

According to Cointelegraph, a media outlet specializing in virtual assets (cryptocurrencies), Stephanie Rowton, Head of U.S. Equities at S&P DJI, revealed, "We are taking a strategic approach to launch tokenized indices only on platforms that meet standards for transparency, security, and regulatory compliance," and added, "Through such collaborations, we aim to build a robust infrastructure and enhance the investor experience."

Earlier this year, S&P Dow Jones Indices partnered with the decentralized protocol Centrifuge to introduce a tokenized fund based on the S&P 500 Index. The company is also considering expanding tokenization to representative indices such as the Dow Jones Industrial Average (DJIA) and themed indices.

Rowton explained, "Blockchain technology holds transformational potential for financial markets," and noted, "Tokenization can play a key role in bridging the gap between traditional finance and DeFi." She continued, "Our strategy is to help the new generation of investors interact with established benchmarks in innovative ways."

She also predicted that by 2030, tokenized indices would play a 'pivotal' role in global markets. Rowton stated, "Tokenization will increase cross-border market accessibility and liquidity, enable new investment strategies by incorporating DeFi features such as fractional ownership and automated trading," and emphasized that, rather than threatening the traditional licensing business, it will act as a "complementary innovation" to expand opportunities for the commercialization of indices.

Meanwhile, as of the end of July, the market capitalization of blockchain-based financial products reached approximately $370 million, and the tokenized asset market is demonstrating rapid growth.