Asset Tokenization in Financial Markets 2025

Contents4 Shared system of record Unified records that drive information symmetry and provide an unambiguous view of asset ownershipExecutive summary Flexible custodial arrangements Increased user- centricity through varied custody models, granting end users greater control over their assetsAsset fractionalization Expanded market accessibility through micro-units of ownership, significantly reducing administrative burdens and barriers to entryComposability Enhanced multi-asset mobility, enabling efficient reuse of collateral across trading and settlement activitiesProgrammability Operational efficiency via smart contracts that automate complex financial transactions, embedding logic directly into processesThe report examines existing use cases to clearly articulate tokenization’s unique value proposition and outlines five distinct differentiators powered by programmable ledgers (DLT/blockchain): This report assesses current asset tokenization use cases in issuance, securities financing and asset management, highlighting conditions and regional factors that determine successful implementation. Both incumbent and new market structures, along with digitally native service providers, are actively reshaping their services to meet the growing expectations for speed, efficiency and user-centricity in a rapidly evolving landscape. While the potential of tokenization is clear, barriers to adoption remain, including legacy infrastructure integration, inconsistent global standards, limited cross-chain interoperability, inadequate secondary market liquidity, and privacy and compliance concerns. Addressing these challenges through careful coordination and pragmatic strategies is critical for tokenization to achieve scale and lasting impact in financial markets. As tokenization develops, there are design choices that need to be considered such as the choice between permissioned and permissionless ledgers, the most suitable settlement asset and the operating hours of future marketplaces. Likewise, there are considerations for deploying tokenized products, including cybersecurity, financial stability and regulatory developments. Despite its benefits, tokenization adoption remains non-linear, constrained by infrastructure readiness, commercial viability, regulatory fragmentation and insufficient, yet emerging, market coordination. Transitioning financial markets from fixed-trade windows and regional frameworks to continuous, global operations requires a practical, phased approach. Tokenization has the potential to unlock the next generation of value exchange in financial markets. While barriers remain, momentum continues to build, and financial institutions, policy-makers and technology providers need to coordinate regulation, interoperability and consumer protections to safely usher in this evolution. Executive summary This report employed a global multistakeholder approach to exploring the potential impacts of asset tokenization on financial markets. Tokenization presents a transformative digital asset ownership model, fundamentally reshaping global financial markets. When effectively implemented, tokenization can significantly enhance transparency, accessibility, operational and cost efficiency and market flexibility, allowing participants to transact at any time and anywhere. The core advantage of tokenization lies in democratizing financial market access, enabled by trusted infrastructure.