At the time of writing, the total value of funds that global asset managers have been holding in a tokenized form  stands at $23.6B in 2026.  By 2030, the numbers are expected to rise to  $600B.  

Such momentum to happen in just 4 years   signals  that asset managers have found something unusual or unprecedented that can help them scale. And that’s the ability to tokenize on top of decentralized ledgers, which was missing all this while.

In this blog, we shall discuss what some of the largest asset managers are doing with tokenization on decentralized ledger rails. So, if you are an asset manager, you wouldn’t like to miss this because the signals are just getting louder day-by-day around tokenization. 

Areas Where  Top Asset Managers Have Integrated Tokenization To Resolve Key Challenges 

1. Tokenized Money Market Funds  and Cash Instruments 

In the last two years, Tokenized Money Marker Funds have shown an unprecedented growth, moving from $770 million at end-2023 to $9 Billion and expected to reach a whopping $600B by 2030 as per BCG Report. 

Such feats have been achieved by tokenized MMFs because they have resolved some of the plaguing issues of the traditional money market funds like; 

• Manual Operations: Manual account based operations where transaction processing, NAV maintenance, dividend distribution, record keeping and transaction access are managed manually, which slows the process significantly, leading to capital loss.  

• Slow settlements:  T-1/ T-2 is the prevailing settlement standards that asset managers are forced to practice due to manual reconciliation to manage valuation process and interest accrued, which undervalues the returns. 

• End of the Day Asset Computation: NAV is  computed once in a day at a specific time window instead of computing value yield every second to maximize returns. 

Through a process that works in the following manner;

Due to this, settlements are near instantaneous overriding all the manual processes and even NAV value can be calculated throughout the day instead of a specific time frame. 

So far,  BlackRock with its BUIDL  Fund is the most promising name that has tokenized their Money Market Fund and Cash Instruments  with its market cap reaching    $2.4B in value  with investors like Binance, Securitize, Ripple, Frax Finance, and Hidden Road as trusted investors allowing investors to experience the benefits of instant settlements and accurate NAV computation . 

It is followed by three other big names, Fidelity, JP Morgan and State Street with their respective money market fund and cash instruments named FDIT, Mony and Sweep  touching  $260 million , $100 M and $200 M respectively. 

2. Collateral & Repo Markets

As per a Nasdaq Report, an average asset manager firm is handling approximately $74B total collateral across all activities, from listed to over-the-counter derivative margin to repos and securities lending daily. 

But such a huge chunk of collateral held by the asset management firm is often lying underutilized, leading to a capital buffer crisis where these asset managers have to lock in funds to meet margin calls and other settlements in different jurisdictions, adding up significantly to their cost. 

With the Repo and Collateral Market expected to reach $15.34T  by 2034, modernizing the collateral movement is no longer a choice but a necessity. 

Tokenization  resolves this by working in the following manner; 

As a result, asset managers are getting the following benefits when tokenizing repo and collaterals; 

• Instant  settlements in DvP and PvP
• Realtime visibility and reporting of collateral 
• Smart-contracts integration to  manage lending and collateral. 
• Quick mobility to unlock funds using collaterals 

Some of the Top Asset managers using tokenization for collateral and Repo 

• Franklin Templeton: 

Franklin Templeton, holding $800 M in US-registered government MMFs with the records of all those assets dispersed across different custodians. 

They have partnered with Binance to introduce tokenization of such funds  so that it can be easily collateralized for institutional trading under its FOBXX initiative.  

• Goldman Sachs GS DAP: 

The Goldman Sachs GS  DAP  platform has allowed financial institutions to quickly access the collateral and repo Market with  Euro Money, HKSAR  and  European Investment Bank as prime examples. 

They  are using the GSDAP platform to  issue  tokenized investment vehicles like  green bonds and  Euro denominated digital bonds named Venus  on a private blockchain. 

So far, this move is widely welcomed with BNY Mellon and  GS DAP collaborating to increase the mobility of stablecoins and tokenized money market funds, signalling giant moves ahead by asset managers in the collateral and repo market. 

• BNY Mellon: 

BNY Mellon  with its tokenized deposit service is allowing asset managers to   introduce programmable, on‑chain cash for institutional market infrastructure to undertake faster settlements and round the clock operations. 

BNY Mellon will be using tokenization to record the ownership of the customers in selected or high value MMFs. Through this, it will abstract the complexity where instead of investors and corporations selling money market funds to deliver cash collateral for a trade, they can simply use them in a tokenized form and initiate quick exchanges without having to convert them for cash every time.

 

3. Proprietary Blockchain Infrastructure & Tokenization Platforms

A 2025 Broadridge Tokenization Survey was conducted where more than 300+ financial institutions and asset managers participated. In this survey, it was unveiled that asset managers are aware that tokenization can improve operational efficiency but  strict compliance is a major hurdle for them. That’s why at the moment, the adoption rate stands at around 15% only as per BroadBridge Report.

Seeing this as an opportunity of transition, some of the key asset managers like Franklin Templeton and Wisdom Tree  are not just tokenizing for themselves, but  building  integration rails  for others to speed up adoption. 

• For example, the Benji Platform, the tokenized innovation of Franklin Templeton,  has abstracted the need for other asset managers to develop everything from scratch if they want to adopt tokenized products. 

With a  simple plug-in model  using the Benji platform, asset managers can undertake issuance, transfer, recordkeeping, wallet management, and yield distribution. 

• Likewise, Wisdom Tree has also provided API gateways resolving compliance challenges that  asset managers face when they want to adopt tokenization for asset management. Through its WisdomTree Connect, the API Infrastructure for Institutional DeFi,  asset managers can quickly launch their tokenized products on-chain. 

In addition to this, Wisdom Tree has also unveiled DTCC’s Token Factory, Smart Contracts built on institutional grade Infrastructure. Which means, it is in tune with settling transactions like it does in the traditional markets. 

So far, both these players have achieved significant traction post their innovation with  Franklin Templeton expanding operations to 10 different blockchains using tokenization and smart contracts as connecting layers. 

Whereas, Wisdom Tree’s  WisdomTree Connect now offers   13 SEC-registered tokenized funds, expanded across Ethereum, Arbitrum, Avalanche, Base, and Optimism’s OP Mainnet chains to  institutional clients who have so far faced difficulties connecting Tradfi with DeFi/ Crypto.

4. Access to New Markets 

At this moment, institutions are showing a keen interest to invest in products with tokenization features because their traditional counterparts are mired in the following challenges; 

• High cost of operations 
• Slow settlements 
• Limited Market access 
• Regulatory Hurdles

But tokenization almost opens a new dimension because with tokenized products, it is possible to provide faster settlements, access to new markets and improvised operational efficiency. 

That’s why largest asset managers are innovating with tokenized products wherein they can help open new markets.  Why so? Because right now, access is quite limited for a certain grade of institutional investors. 

For example, if crypto institutions want to invest in traditional markets, they face regulatory risks and other settlement challenges. But with tokenization, this problem is getting resolved. 

Invesco has been building across these lines to meet the  demand for institutional on-chain investment. Right now, they have launched  the Superstate Short Duration US Government Securities Fund (USTB), which is a tokenized T-bill  allowing to bridge the gap between  traditional finance and blockchain technology by providing institutional investors with compliant, on-chain access to high-quality, short-duration U.S. Treasury. The fund works in the following way to help onboard new markets and investors; 

Web 3/ Institutional investors can quickly convert their USDT holding and convert the same to USTB tokens and generate yields in the process. 

5. Private Credit 

The Private Credit market, despite  being a  $3 T market in 2026  and  expected to reach $5 trillion by 2029 as per Morgan Stanley Report, witnesses marginal retail participation even though  Trump  has passed the executive order 401(k). This is happening because of the following problems; 

• Slow Performance: Private credit has very slow performance and investors have no means to validate whether they are provided with transparent information. This flaw is happening because  firms operating in the Private Credit Market provide shady information of their operation as per Palicio Report, a private credit buy and sell marketplace. In 2026, due to this, the default rates are going to move past 8%. 

• Opacity: Opacity is another major problem since private credits are not providing complete information, instead, lobbying with regulators and governments. 

• Collusion: Many players in the industry like pension funds, insurers, and endowments are charging excessive fees and they benefit from this practice.  But investors are the ultimate losers because neither they get better returns nor the assurance  of the funds getting repaid back. 

By launching tokenized private credit products, players like Hamilton Lane are making a huge difference to resolve these problems. For example, ever since the launch of SCOPE Private Credit Fund in Australia, Hamilton Lane has allowed not just monthly subscription but even higher returns with a verylow investment entry threshold standing at US$10,000 with monthly liquidity guarantee and better accessibility to view the fund transparently. 

So far, the fund has been able to generate a steady stream of high returns of 8% to 10% with assured disbursement triggered via smart-contracts operated in  following manner; 

What Should You Do Next? 

What stands out across all these initiatives is not just adoption, but intent.

Asset managers are no longer experimenting with tokenization, rather,  they are systematically embedding it into core market functions like liquidity management, collateral mobility, and fund distribution. The shift is no longer theoretical. It is operational.

More importantly, the gap between early adopters and the rest of the market is starting to widen. While leading firms are building proprietary rails, launching tokenized funds, and unlocking new liquidity channels, others are still evaluating feasibility.

And in markets where settlement speed, capital efficiency, and access define competitiveness, delayed adoption does not just mean missed opportunity, rather, it compounds into a disadvantage over time.

Tokenization is not emerging as a parallel system,  but becoming an  infrastructure layer on which next-generation asset management will operate. But deploying the same comes with some technological challenges that you must address firsthand. That’ s where Zeeve can help. 

Launch Your Tokenized Product  As an Asset Manager  with Zeeve

With a SOC2 and ISO-aligned operating posture, Zeeve is well positioned to help bring enterprise rigor to Web3 infrastructure. With expertise across multi-stack:  public, private, hybrid, and ZK-enabled systems, we can help you build your tokenized product infrastructure  that can fully resolve repo, collateral mobility, transparent private credit reporting, and ability to introduce new products that you are looking for. 

With Zeeve’s Privacy Layer, we also ensure that while undertaking product innovation, you do not have to compromise with compliance and regulations and fail later. So, if you have an idea in mind where you want to integrate tokenization and solve an existing problem as an asset manager, we are here to help 

Zeeve has already powered 20+ production chains processing 2B+ transactions monthly, and we have the capability to generate the same results for  you too! Schedule a call today if you are looking for a reliable technology partner that can help you innovate while staying compliant!