More than half (52 per cent) of fund managers have started to focus on tokenisation as institutional interest in the sector starts to build, as revealed by new global research by tokenisation platform Token City.
More than half (52 per cent) of fund managers have started to focus on tokenisation as institutional interest in the sector starts to build, as revealed by new global research by tokenisation platform Token City.
The study, conducted among fund managers in France, Spain, Germany, Switzerland and the UK with around USD546.5 billion in assets under management, found more than four in five (83 per cent) fund managers agree that the shift into a tokenised economy offers greater potential for a more transparent, open, and fairer financial services industry.
Around 85 per cent of fund managers questioned said they believe financial services providers who are not prepared for mass tokenisation of assets risk being left behind.
Token City says most fund managers who are testing the market have very small levels of exposure to Security Tokens, as they are investigating the market in terms of how it works, its infrastructure and liquidity. However, the research for Token City, which provides the platform infrastructure and services for issuing, managing, and trading Security Tokens by investors, investment funds, portfolios, brokers, and other investment service companies, shows interest in the sector is building up.
One in five fund managers (21 per cent) questioned have already invested in some tokenised assets and 73 per cent plan to do so within the next three years. Around 37 per cent say they would consider launching their own investment vehicles investing in tokenised assets within three years, while 47 per cent say they could offer these products within three to five years.
The World Economic Forum estimates that up to 10 per cent of global GDP will be stored and transacted via DLT by 2027 and that tokenised markets could potentially be worth as much as USD24 trillion by 2027.
Token City founder and CEO Yael H Oaknin, says: “Tokenisation of assets is attracting growing interest and the fact that more than half of fund managers have already started assessing the market highlights that. The market is forecasted to grow strongly over the next three years as more investors look at the opportunities offered by tokenisation of assets. Forecasting the future is not an exact science, but it is clear the market is building momentum as investors start to recognise the potential benefits and start to prepare for the expected growth.”
