Asset Tokenization in Financial Markets 2025

Contents23 Tokenized assets These are examples of tokenization benefits in public equity markets: 1. Enhances information symmetry Embedding IPO listing criteria directly into tokens can enhance distribution efficiency and transparency.14 This could be beneficial as public firms demonstrate faster growth after receiving equity because of superior information efficiency by aggregating known information into the stock price and through robust governance mechanisms, improving the investor experience.15 2. Facilitates operational efficiency Corporate actions represent capital markets’ largest unstructured data challenge, with more than 3.7 million event announcements annually in the US alone and costing each participant $3–5 million annually.16 3. Expands accessibility Traditional foreign public equity investments involve costly processes such as immobilizing stocks into depository receipts and incurring administration, custody and FX fees.17 Tokenization could mitigate these costs by embedding compliance directly into assets and improving secondary market liquidity.18Tokenization is just one enabler for realizing compliance of on- and off-chain data; additional processes are usually also necessary (e.g. identity checks and legal checks). Despite these advantages, tokenizing already-efficient public equity markets, particularly in AEs, faces challenges. Public equities today benefit from robust governance and efficient price discovery.19 To achieve adoption, tokenization must deliver substantial value and clarify where these assets would be traded in new venues such as DEXs or other digital trading venues.