The adoption of tokenized assets shows no sign of slowing down according to Broadridge Financial Solutions’ latest whitepaper, “Next-gen markets: The rise and reality of tokenization”. Custodians lead this adoption, with 63% already offering tokenized assets and an additional 30% preparing to offer tokenized assets within two years. Wealth managers, by contrast, have been slower to adapt.
“Custodians have set the pace with 91% citing improvements in efficiency, security, and innovation by offering tokenized assets,” said Germán Soto Sanchez, Chief Product and Strategy Officer, at Broadridge. “Institutions that commit to trusted client experiences, strong governance, and scalable infrastructure for tokenization can lead a transformation that will redefine global markets for the next generation of investors.”
Stages of tokenization adoption
While custodians are leading the charge, asset managers are accelerating the rate of adoption, and wealth managers are comfortable lagging for now. Only 15% of asset managers currently offer tokenized products, but 41% plan to launch them soon, indicating that tokenized asset adoption is becoming a priority. For asset managers, tokenization moves beyond operational efficiency, it creates the foundation for them to stay relevant with investors interested in digital assets.
Wealth managers have taken a more cautious approach to tokenized asset offerings, as only 10% currently offer them and 33% plan to adopt them in the next two years. Operational complexity and disintermediation from direct-to-investor models are the primary drivers of wealth managers being late adopters in the digital asset space. However, given activity over the past 6 weeks by several firms related to tokenized equities, perceptions may be changing.
Challenges in closing the tokenization adoption gap
Tokenization offers improved transparency and data tracking, liquidity and accessibility, lower costs and innovation, but adoption barriers remain an influence on asset and wealth managers slower uptake. The majority (73%) of institutions surveyed said that regulatory uncertainty is the biggest challenge for tokenization adoption. Similarly, security concerns, infrastructure gaps, and a lack of common standards impact adoption plans.
The survey also found that early adopters report an average of four to five tangible benefits from tokenization, while non-adopters reported fewer than three perceived positives. The gap between those leading and those waiting is widening, highlighting the benefits accruing to early movers.
“Scaling tokenization offerings will require common standards, regulatory clarity, and robust technology partners. It will also require cultural change, as institutions prioritize tokenization as a core strategy instead of a side project. The difference between a pilot and scaled adoption is the ability to deliver tokenized products at volume, across asset classes, and with the same reliability as traditional securities,” Broadridge wrote in a statement.
Institutions with live tokenization programs are already seeing material gains:
- BlackRock’s BUIDL fund offers near-instant settlement and daily liquidity for tokenized U.S. Treasuries — features that are reshaping short-term cash management.
- Franklin Templeton’s BENJI token allows investors to convert USDC stablecoins into mutual fund shares, conduct peer-to-peer transfers, and track ownership on public blockchains, delivering operational efficiency and next-gen investor access.
- BNY Mellon has begun broadcasting fund accounting data on-chain through smart contracts, demonstrating how custodians can embed transparency and automation deep within the asset lifecycle.
“These are not proofs of concept, they are operational systems serving institutional and retail clients today. And they offer a preview of the broader efficiencies and capabilities firms stand to gain as adoption grows,” according to the white paper.