Forty-four per cent of 250 senior executives at fund managers across the US, Europe and the Asia-Pacific region plan to offer tokenised investments within the next year, and a further 24 per cent already offer them to their clients, according to “The Crowded Trade”, a global study commissioned by Clearwater Analytics.
Furthermore, 16 per cent of asset managers say they will enter the tokenised assets market within the next 12 to 24 months. In total, 97 per cent expect to offer tokenised investments within three years.
As asset managers explore ways to improve operational efficiency, broaden investor access and modernise infrastructure to capitalise on investor appetite for private markets, the research reveals a growing appetite for tokenisation.
Almost all (96%) asset managers taking part in the survey say that tokenised private credit funds – which allow fractional exposure to business loans that can offer higher yields to a broader investor base – look attractive.
Meanwhile, more than half (56%) of respondents say the same about private equity, with 26% stating that the prospect of tokenised private equity funds is very attractive.
Kirat Singh, President of Risk and Alternative Assets at Clearwater Analytics, said: “Nearly every firm in this survey expects to offer tokenised investments within three years. When so many firms move into the same format at the same time, attention turns to what underlies it. A tokenised fund still depends on an accurate investment record, consistent data across traditional and digital holdings, and clear visibility into risk. With 86 per cent of firms already reporting doubts about key data at least once a week, every new tokenised product adds another record they will need to trust.”
The full findings of “The Crowded Trade” are available at https://cwan.com/resources/reports/the-crowded-trade-global-asset-manager-report/
