Asset Tokenization in Financial Markets 2025

Contents44 FIGURE 16 Market catalysts driving new custodial capabilitiesImpacts of tokenization Market catalysts New capabilities Next-gen custodianshipInstitutional productizationTrusted custody of native digital assetsCustodians will be viewed as the trusted safekeepers of digital assets, unlocking new products and services Increased collateral mobility and velocityMore assets can be brought on- chain and used (and reused) as collateral, domestically and cross- border Pronounced public network adoptionNotable uptick in adoption of public blockchains by financial services entities Unlocked private market liquidityNew sources of market activity for private assets in primary and secondary markets Quantum attacks to break encryptionsRisks of network interception, identity impersonation and “harvest now, decrypt later”Multitiered custody and on- chain functions— Cold and hot storage — Institutional “vaults” — Retail and segregated wallets — On-chain corporate actions— Staking rewards management — Tokenized collateral management — Institutional wallet/vault services — Reusable credentials — Privacy-enhancing tech — Off-chain ID data storage — GDPR complianceOn-chain identities and KYC/AML — Cross-chain integration — On-chain activity trackingNetwork integration and on-chain analytics — Cryptographic agility — Quantum-resistant signature algorithms — Novel encryption methodsQuantum-safe systems