Broadridge survey shows tokenization becomes strategic priority for 84% of financial firms

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Broadridge survey on tokenization

Highlights

Broadridge reports 84% of financial institutions now prioritize tokenization, with 68% expecting it to partially reshape markets within three to five years.
Nearly one-third of surveyed firms plan to boost tokenization project investment by 26% to 50% or more over the next two years, focusing on hybrid infrastructure.
44% of capital markets firms have tokenization initiatives at scale, with DTCC completing its first live tokenized securities trades and regulatory uncertainty remaining a top challenge.

Survey findings and adoption plans

As reported by CoinDesk, citing Broadridge, 84% of financial institutions now view tokenization as a strategic priority for their business, underscoring how blockchain-based asset issuance is gaining ground across financial services.

Tokenization refers to representing ownership of assets such as stocks, bonds, funds or real estate as digital tokens on a blockchain. Supporters say the model can simplify settlement, reduce operating costs, support round-the-clock trading and make assets easier to split into smaller ownership stakes.

The survey finds 68% of respondents expect tokenization to at least partially reshape financial markets within the next three to five years. Nearly one-third also plan to raise investment in tokenization projects by 26% to 50% or more over the next two years.

Firms are largely backing hybrid infrastructure rather than a fully onchain market structure. The survey shows 92% expect digital and traditional assets to coexist for the foreseeable future, while 69% plan to integrate tokenization into existing systems instead of building separate blockchain-native platforms.

Market implications for capital markets

That approach aligns with the strategy many large financial institutions are already pursuing, linking blockchain networks to current trading, custody and settlement systems instead of replacing them outright. Interest has accelerated over the past two years as major firms expand tokenization efforts, including BlackRock in tokenized Treasury funds, Franklin Templeton in tokenized money market funds and JPMorgan through its Kinexys settlement platform.

DTCC on Wednesday completes its first live production trades involving tokenized securities, marking a significant step in bringing blockchain technology into traditional financial markets. Companies including Visa and DTCC are also building infrastructure to support tokenized payments and securities.

Adoption remains uneven across the sector. The survey shows 44% of capital markets firms already have tokenization initiatives in production or operating at scale, compared with 20% of asset managers and 9% of wealth managers.

Respondents expect tokenized mutual funds and money market funds to gain traction faster than tokenized equities over the next five years. About 80% say tokenized funds will play a meaningful role in that period, while only about half expect similar adoption for tokenized equities.

Regulatory uncertainty remains the most commonly cited obstacle, followed by the operational complexity of integrating blockchain technology into existing financial systems.

Our earlier coverage of the CLARITY Act focused on lawmakers’ renewed push for a federal market-structure framework for digital assets, aimed at defining when tokens are treated as securities versus digital commodities. The article highlighted how regulatory uncertainty and overlapping SEC-CFTC jurisdiction are seen as key factors pushing crypto-related capital and innovation overseas, reinforcing calls for clearer rules to support onshore growth.

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