Tokenization Becomes Strategic Priority for 84% of Financial Firms

Tokenization is no longer a future-state concept but has become a strategic priority for institutions across the financial sector. According to the inaugural Broadridge Tokenization Pulse Survey released by Broadridge Financial Solutions, Inc. (NYSE: BR), 84% of financial firms view tokenization as strategically important to their organizations. This indicates that the industry is actively preparing for a future where digital and traditional assets operate side-by-side.

The survey, conducted by Phronesis Partners on behalf of Broadridge, engaged 200 senior decision-makers in the United States and Canada, covering wealth management, asset management, capital markets, and digital asset firms. Key findings include that 68% of firms believe tokenization will partially reshape financial markets within the next three to five years. Furthermore, 69% of respondents plan to hybridize existing infrastructure rather than building entirely separate systems, and 92% expect digital and traditional assets to coexist for the foreseeable future. Nearly one-third of firms intend to increase their tokenization investment by 26% to 50% or more over the next two years.

Tokenization holds the potential to reshape how assets are issued, traded, financed, and serviced, promising greater efficiency, resilience, and trust in financial markets. While adoption is progressing at varying stages across the industry, capital markets firms are leading implementation efforts, whereas asset managers and wealth managers are more focused on building capabilities and evaluating operating models. The research suggests that public market funds, specifically mutual funds and money market funds, may be among the leading areas of early adoption, with 80% of respondents expecting them to play a meaningful role within five years, compared to lower expectations for equities. Existing platforms, such as Broadridge’s Distributed Ledger Repo (DLR) solution, already process over $365 billion daily in tokenized real assets, demonstrating the practical applicability of tokenization.

This development is part of a broader digital transformation within the financial sector, driven by blockchain and distributed ledger technology (DLT). Firms are navigating regulatory uncertainties, governance issues, and the complexities of connecting digital and traditional ecosystems. The focus is shifting from mere technological exploration to tangible business benefits such as cost, revenue, and treasury advantages. Legal clarity is cited as a primary reason preventing investors from holding digital assets.

German Soto Sanchez and Mark Nichols, Co-Presidents of Digital Assets at Broadridge, emphasize that tokenization has the potential to reshape how assets are issued, traded, financed, and serviced. They note that the survey results underscore both the opportunities and challenges firms face as they seek to connect digital and traditional assets, support governance and controls, and build markets that are efficient, resilient, and trusted. The prevailing expectation is that tokenization will serve as an extension of the existing financial architecture, with hybrid models poised to guide market evolution in the coming period.