A global survey by Calastone has uncovered a multi-billion dollar opportunity for tokenised funds, driven by a convergence between traditional asset management and decentralised finance (DeFi).
The asset managers surveyed are increasingly tokenising their traditional funds – such as money market funds, private asset funds and mutual funds – and distributing them in tokenised form as the fastest route into digital assets, while the DeFi providers surveyed shared that DeFi platforms are seeking tokenised money market funds to manage their treasuries and retain investor capital. This alignment highlights tokenisation as the bridge between two financial ecosystems that have, until now, operated largely apart.
The research, conducted by ValueExchange for Calastone, surveyed asset managers worldwide and found:
• Tokenised fund assets under management (AUM) is projected to grow from US$4 B in 2024 to reach US$235 B by 2029, a 58-fold increase.
• Nearly a third (28%) of asset managers plan to distribute tokenised funds by 2030, up from 13% who plan to do so in 2026.
• Money market funds (MMFs) and private asset funds were the most favoured asset classes for tokenisation.
The study also surveyed DeFi and Web3 platforms to understand demand for tokenised products, and found that 50% expect their tokenised holdings will rise by at least 25% by 2030.
Today, most DeFi platforms still rely on traditional money market funds or bank deposits for their cash management, despite operating on decentralised rails. At the same time, the research reveals that DeFi investors are looking for access to these products on the venues where they already trade crypto, creating a dual layer of demand.
Tokenised MMFs offer an attractive alternative, combining the safety, liquidity and yield of traditional products with Blockchain-native benefits such as on-chain settlement, integration with digital wallets, and the ability to transact in stablecoins.
In the Asia Pacific region (APAC):
• 85% of APAC asset managers embrace tokenisation, compared to 77% globally
• 66% of APAC asset managers expect to use digital distribution platforms and exchanges to distribute their tokenized fund
• APAC is the region set for biggest growth in tokenised funds
• A third of Web3/DeFi platforms in APAC view tokenised funds as a future priority, rather than one that commands immediate strategic importance, whereas respondents from Europe and North America unanimously viewed tokenised funds as an immediate strategic priority
Adam Belding, CTO, Calastone said: “DeFi has created a new class of platforms and investors who want to access the same trusted products that underpin traditional markets - but in a way that fits their digital-native infrastructure. Our research shows treasuries are eager for tokenised money market funds to manage cash efficiently, while investors want access to them on the same venues where they hold and trade their digital assets.
"Tokenisation provides the bridge, enabling asset managers to meet both needs with products that are immediately usable within the DeFi ecosystem. This is where supply and demand finally converge; we have reached a turning point where asset managers can leverage tokenisation to compete and win new customers in the DeFi space now.”
Calastone offers a Tokenised Distribution Solution that enables asset managers to bring tokenised versions of their existing funds to market quickly and efficiently, without needing to change their underlying infrastructure.
