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The greatest challenge mentioned was regulatory ambiguity, cited by 73% of participants.

The process of tokenization is transitioning from theoretical ideas to practical application within the financial sector, as highlighted in a recent study by Broadridge Financial Solutions, with custodians taking the forefront in embracing this change.

The report highlighted that 63% of custodians currently provide tokenized assets, with another 30% intending to introduce them within the next two years.

Key advantages play a significant role. Within the custodial sector, 91% mentioned enhancements in efficiency, security, and creativity as motivations for implementing tokenization. Pioneers identified four to five specific benefits, whereas those who did not adopt it mentioned less than three.

The rate of adoption differs across sectors. In the asset management field, 15% are already utilizing tokenized products, while 41% intend to do so soon. Wealth managers are somewhat behind, with 10% currently active and 33% planning to introduce such offerings within the next two years.

Broadridge cited the reduced adoption in this area as being due to operational challenges and worries regarding the removal of intermediaries.

Nevertheless, obstacles still exist. The primary issue mentioned is regulatory ambiguity, cited by 73% of participants. Additional difficulties involve safety worries, constraints in infrastructure, and the absence of unified industry guidelines.

To expand tokenization across the industry, the report emphasized the importance of well-defined standards, clear regulations, dependable technology collaborators, and a cultural transformation that integrates tokenization as a fundamental approach across all asset types—with the same dependability as conventional systems.