Asset Tokenization in Financial Markets 2025

Contents43 Liquidity centralization – particularly for tokenized cash and various stablecoins – may become a core function. However, the scope of the CCP’s role should be assessed contextually. For example, Australia’s Council of Financial Regulators concluded that a CCP delivers net benefit only when participation reaches critical mass to offset its cost structure (e.g. margins, fees).117 Central securities depositories CSDs manage post-trade functions such as record-keeping and corporate actions. Complexity and manual processes persist – 78% of leading financial institutions still process actions manually.118 CSDs could issue assets using verified digital IDs, manage settlement with on-chain cash, validate ledgers and automate asset servicing.119 CSDs will also provide regulatory compliance, while supporting asset tokenization, wallet management and interoperability between tokenized and traditional systems.120 In the Regulated Settlement Network trials, CSDs were also identified as potential immobilization providers for multi-asset DvP settlements.121Custodians Custodians can evolve into digital asset safekeepers, emphasizing multi-tiered custody, staking and institutional wallet solutions, in addition to acting as a trusted intermediary for on- and off-chain integration. For example, BNY has expanded its Digital Asset Platform to include on-chain data services, beginning with broadcasting fund accounting data for BlackRock’s tokenized fund onto the Ethereum network. This example reflects how major institutions are adapting to the commercialization of tokenized products and leveraging data transparency, automation and accessibility across the asset life cycle while also optimizing the user experience for the on-chain native investor.122 Further, the expected increase in collateral velocity will designate custodians as key participants in cross-custodial asset movements, thus increasing their speed of operation while remaining KYC/AML- compliant. Digital-native custodians are acquiring trust charters to facilitate payments, access liquidity and bridge traditional and crypto-assets.123 In the case of physical assets, analogue providers such as gold vault services will become integral to processes like redemption.Transfer agencies TAs manage shareholder registries, cap tables and security transfers, often through manual, fragmented processes.124 Most TAs use ledger software to manage investor data, but these systems rely on manual entry, adjustments and data sharing with fund administrators, alternative trading systems, custodians and brokers.125 Tokenization could improve their roles by using reusable digital IDs for efficient KYC/AML, automating cap table services, using programmable ledger bookkeeping, conducting direct on-chain transfers and programmatically orchestrating corporate actions, demonstrated by WisdomTree’s tokenized funds and Securrency Transfers’ integration.126 TAs can also benefit from more efficient KYC checks and repurposable digital IDs, as financial institutions spend an average $2,598 per client onboarded, and TAs often verify thousands of investors across dozens of countries.127 For example, as momentum around tokenized funds builds, the TAs’ role could evolve towards a digital transfer agent (DTA) model. In this approach, smart contracts can be used to maintain share registries and automate fund life-cycle activities – such as subscriptions and redemptions – unlocking greater operational efficiency, transparency and interoperability across blockchain networks.Impacts of tokenization