Tokenisation is moving into a more decisive phase. The conversation is shifting away from whether blockchain can support regulated investment products, and towards how firms can use tokenised rails to reach new pools of demand without compromising control, compliance and operational resilience. Our recent global research into tokenised fund distribution points to a clear trajectory: tokenised funds are on course to expand materially, with tokenised fund AUM forecast to reach $235bn by 2029, representing a 58x increase from 2024. At the same time, tokenised distribution is becoming an increasingly near-term priority, with 13% of managers planning to distribute tokenised funds in 2026, rising to 28% by 2030.
What is changing fastest is the “why” behind adoption. Tokenised distribution is being pulled by clear demand for on-chain access to familiar, regulated exposures, particularly cash and yield instruments. In our study, money market funds and private asset funds emerged as the most favoured asset classes for tokenised distribution. This aligns with what decentralised finance and Web3 participants are increasingly looking for: better treasury efficiency, improved liquidity management, and access to real-world yield without leaving the on-chain environment. In our survey, 80% of DeFi/Web3 respondents believe tokenised money market funds could improve treasury management, while 50% expect tokenised holdings to rise by at least 25% by 2030.
For asset managers, the practical implication is that tokenisation does not need to begin with rebuilding the entire fund operating model. It can begin with distribution, making the fund unit compatible with blockchain rails while maintaining existing governance, servicing arrangements and investor protections. That distribution-led approach also reflects how managers want to execute. Our research shows a strong preference for partnership-based models and outsourced capabilities, with technology partners seen as a Day 1 priority. Digital exchanges and distribution platforms are also favoured routes to market, reinforcing that scale is more likely to come through ecosystem connectivity than stand-alone builds.
Asia is playing a visible role in this transition, not simply through experimentation but through market signals that tokenised products and supporting frameworks are advancing in parallel. Hong Kong, for example, has seen tokenised fund launches in the money market category, alongside a clearer direction of travel on stablecoin oversight – an important development because tokenised distribution scales fastest when the asset leg and the payment leg evolve together.
That payment leg, digital cash, will be a defining theme for 2026. Stablecoins, tokenised deposits and, over time, CBDCs can reduce friction in subscriptions and redemptions, support shorter settlement cycles and improve capital efficiency. Our research suggests the market is preparing for a multi-rail future: managers increasingly expect to support more than one form of settlement, and bank-issued stablecoins are viewed favourably as an institutional bridge between traditional banking frameworks and on-chain settlement.
Our view is that 2026 will be characterised by interoperability and orchestration. The firms that progress fastest will be those that can connect regulated funds into tokenised distribution venues, support evolving forms of digital cash, and do so with the controls that distributors, regulators and institutional investors require. Tokenisation is moving beyond isolated pilots and toward repeatable distribution capability, expanding addressable demand while improving efficiency across the investment lifecycle.
(First published in finews.asia December 2025)
