Fund administrator Apex commissioned a survey of 100 asset managers to explore their take up of distributed ledger technology (DLT) and tokenization. It found that 92% of asset managers with funds of more than $5 billion in assets under management (AUM) expect to see broad DLT deployment within 3 years, with half predicting 2 years or less.
Just 10% of fund managers consider tokenization as unimportant, with 17% already fully deployed and another 33% with limited rollout, and the rest in pilot phases.
Regarding motivations, efficiencies are a major one with almost two thirds mentioning it. But the top driver is broader investor access, mentioned by 71% of respondents. That typically takes different forms. We’ve seen many asset managers targeting crypto natives with offerings, and more recently, stablecoin issuers in particular. But there is also the fractionalization play by making funds that would usually have substantial minimum investments more accessible. While this has been framed as democratization, in reality it often allows high net worth individuals (HNWIs) to access funds usually restricted to institutional investors.
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