In this opinion piece, Rehan Ahmed, CEO of Singapore FMI Marketnode explores how blockchain and tokenization can transform fund distribution.
Asia Pacific has cemented its position as a leading global capital hub, home to four of the world’s top ten capital sources as of early 2024. The region is poised for a new phase of growth, driven by digital assets and tokenised securities, as institutional investors and high-net-worth individuals (HNWIs) increasingly seek more diversified portfolios. Nowhere is this transformation more evident than in the funds industry, which has seen some of the largest strides in tokenisation with expectations of it encompassing 1% of global mutual fund and ETF assets under management – over $600 billion – by 2030. However, behind the scenes of this promising picture lies an operational reality that is encumbered by fragmentation.
Despite strong growth projections for the region’s funds markets, inconsistent regulatory frameworks and market practices across jurisdictions hamper technological progress and undermine service delivery. This weakens market connectivity, whether between institutional and retail investors or offshore and onshore ecosystems. Without a streamlined infrastructure, fund distribution remains cumbersome, settlement cycles are prolonged, and data management lacks consistency. Overcoming these challenges calls for a next-generation funds market infrastructure — one that is digital-first, blockchain-enabled, and built for global interoperability.
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