Asset tokenisation is no longer optional for financial institutions

IN TODAY’S global economy, increasingly outdated infrastructure continues to hamper the movement of capital and financial assets across borders, even as financial technology advances relentlessly. This inefficiency remains a central challenge that limits the optimisation of real economic benefits and slowing progress towards a more inclusive financial system.

Demographic shifts are reshaping investment priorities, driving demand for higher-yielding assets, but a question is what new asset classes can be made practically accessible. Technology has already revolutionised finance, from mobile banking to artificial intelligence (AI), enabling inclusion and transforming customer experiences.

Now, tokenisation promises to unlock new frontiers including tokenised money market funds and fractional access to private market assets long reserved for institutions, offering retail investors the possibilities of diversified, long-term opportunities. Global asset managers are pioneering this change, and those in Asia are facing an inflection point in navigating non-harmonised regulations and operational complexities to build compliant scalable frameworks.