Tokenization Moves From Hype to Reality in Financial Services, Broadridge Report Finds

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Tokenization Moves From Hype to Reality in Financial Services, Broadridge Report Finds

The tokenization of financial assets — the process of converting traditional investments into digital tokens recorded on blockchain — is rapidly moving from concept to reality, according to a new report from Broadridge Financial Solutions (NYSE: BR), a global leader in fintech innovation.

The whitepaper, titled “Next-Gen Markets: The Rise and Reality of Tokenization,” shows that custodian banks are spearheading adoption. Nearly two-thirds (63%) already offer tokenized assets, and another 30% plan to do so within the next two years.

By contrast, only 15% of asset managers currently offer tokenized products, though 41% plan to launch them soon. Among wealth managers, 10% have entered the market, with 33% expecting to follow by 2027.

“Custodians have set the pace, with 91% citing improvements in efficiency, security, and innovation after adopting tokenized assets,” said Germán Soto Sanchez, Head of Product and Strategy at Broadridge. “Firms that invest in strong governance, scalable infrastructure, and trusted client experiences will lead the next wave of transformation in global markets.”

Benefits and Barriers

The report highlights the advantages of tokenization, including greater transparency, efficiency, liquidity, and accessibility. By digitizing assets, institutions can streamline operations and open investment opportunities to a broader base of investors.

Still, regulatory uncertainty remains the top challenge, cited by 73% of respondents. Other barriers include security concerns, infrastructure gaps, and the lack of standardized frameworks across markets.

Early adopters, however, are seeing clear results: they report an average of four to five tangible benefits from tokenization, compared to fewer than three perceived benefits among non-adopters — a gap that continues to widen.

Broadridge Emerges as a Tokenization Leader

Broadridge itself is positioning as one of the early leaders in institutional tokenization. Its Distributed Ledger Repo (DLR) platform — used for real-world asset settlement — processed an average of $339 billion in daily trading volume in September, making it the largest institutional platform for tokenized asset settlement worldwide.

The company has also committed to expanding digital asset support across its industry-leading financial technology platforms.

The Road Ahead

According to the report, scaling tokenization will require three key factors:

  1. Common industry standards across financial institutions and exchanges;

  2. Regulatory clarity to ensure compliance and investor protection;

  3. Cultural change, positioning tokenization as a core business strategy rather than an experimental side project.

Broadridge concludes that the shift from hype to reality is well underway — and that tokenization is set to become a defining feature of next-generation financial markets.

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