In the fast-evolving world of asset management, few innovations hold as much promise as tokenisation. Our new paper, “The future of financial advice in Asia: How tokenised portfolios can transform the Asian wealth landscape,” produced in collaboration with Value Exchange, HSBC, Northern Trust, and Marketnode, offers a wealth of insights into how tokenisation can transform the wealth management landscape for high-net-worth individuals (HNWIs) in Asia. Among the key findings, one-third of fund managers believe tokenisation could increase their revenues by more than 25%. This statistic highlights the vast growth potential for firms that embrace digital innovation, particularly in a region where over USD 11 trillion in assets are held by HNWIs, many of whom are seeking more personalised investment solutions.
The appetite for greater personalisation is clear, with 40% of Asia’s HNWIs, representing USD 1.1 trillion in assets, dissatisfied with their current options. As competition intensifies, the ability to tailor portfolios for clients with USD 1-5 million in assets is becoming a critical differentiator. However, traditional models of personalisation have been limited by high operational costs and market fragmentation, creating barriers to entry for many asset managers.
Tokenisation changes the game. By lowering operational costs and enabling a more scalable approach, tokenisation opens up access to this underserved segment, allowing asset managers to offer highly customised portfolios to a broader range of clients. Beyond just portfolio personalisation, tokenisation enables a more efficient distribution of investment products across different markets. It allows firms to reach investors in ways previously unattainable due to regional fragmentation or high operational costs. According to the paper, the potential value of these personalised portfolios could unlock up to USD 3.3 trillion in assets. This isn’t just about improving investor experience; it’s about creating new revenue streams for firms, enhancing distribution channels, and driving growth across the industry.
At Calastone, we are committed to driving this change. Our Digital Investments solution will enable the seamless creation of tokenised portfolios, leveraging the full connectivity of our global network. Our approach will ensure a seamless connection between the traditional financial ecosystem and emerging digital networks, such as public blockchains. By integrating automation, transparency, and scalability, we help asset managers reduce costs while delivering more tailored solutions to their clients. For investors, the benefits are clear: greater access to diversified assets, enhanced portfolio management tools, and the ability to truly personalise their investments, all within a secure and interconnected ecosystem.
The findings of this report echo what we are already seeing in the market: 86% of Asian firms expect to offer tokenised funds within the next three years. This is not a distant future but a present-day reality. As we move towards a fully digital ecosystem, the ability to tokenise portfolios will become a cornerstone of competitive advantage.
However, the journey towards a more digital and personalised future in asset management is one that cannot be undertaken alone. It will take the collective efforts of asset managers, technology providers like ourselves, and regulators to create the infrastructure and regulatory frameworks that allow for secure and efficient tokenisation at scale.
Calastone’s business has been built from creating market connectivity, enabling fund firms to seamlessly connect and work together, enabling distribution at scale. The future of the industry is dependent on operating a more interconnected and dynamic ecosystem. The potential for growth is substantial, but more importantly, the potential for creating lasting value—for both asset managers and their clients—is what excites me most.
The future of asset management in Asia is digital, and tokenisation is key to unlocking the next wave of innovation and growth. Now is the time for firms to embrace the opportunity.