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Asset tokenisation to be widespread within three years, research shows

blockchain3The vast majority of asset managers are set to increase their use of distributed ledger technology (DLT) and asset tokenisation within the next three years, according to a survey from BNY Mellon.

The survey found 84% of respondents cited the use of DLT as a top priority and they planned to use the technology to drive operational transformation.

In addition, 72% of the surveyed asset managers planned to develop digital assets and asset tokenisation over the same period.

“Digital assets are here to stay,” said Mike Demissie, head of digital assets unit and advanced solutions at BNY Mellon.

“Enabled by distributed ledger technologies, digital assets including cryptocurrencies, stablecoins as well as tokenised forms of other assets will be an important part of the financial ecosystem.” 

Despite the survey results and Demissie’s comments, there has been a relative slowdown in the adoption of tokenisation in relation to the investment in cryptocurrencies such as bitcoin. 

In a recent Funds Europe webinar, Luke Dorney, head of sales & partnerships, at crypto custodian Zodia Custody, cited the lack of supporting services for tokenisation. 

“Tokenisation of real assets has benefits in terms of liquidity and operational efficiency for institutional investors but it is still at the proof of concept stage and there is no established market infrastructure as yet,” said Dorney. 

The BNY Mellon survey - part of a research series called ‘Asset Management: Transformation Is Already Here, The Industry’s Data-Driven Future Has Arrived’ -  canvassed 200 asset managers around the globe.

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