A survey commissioned by the Bank of New York Mellon (BNY Mellon) is showing that tokenized products are highly popular among institutional investors.
The survey, which polled 271 institutional investors, says that over 90% of the respondents would be interested in putting their money into tokenized products.
“91% of respondents expressed interest in investing in tokenized products.
Benefits of tokenization include removing friction from transfer of value (84%) and increasing access for mass affluent and retail investors (86%).
Every asset manager surveyed with more than $1 trillion assets under management (AUM) is interested in investing in tokenized products.”
According to the survey, 97% of the respondents believe that the tokenization of assets will revolutionize the asset management industry. The assets that institutional investors would most like to see tokenized are private equity and hedge funds.
Some of the most important benefits of tokenization, per the survey, include allowing access to novel asset classes.
“Most important tokenization benefits are access to new or non-standard asset classes and the immutability and transparency of data.
Other benefits include increased liquidity and reduced friction (e.g., faster settlement).
Support for fractional ownership and lower costs via tokenization were rated least important.”
According to the survey commissioned by BNY Mellon, Hong Kong and Singapore are currently the global leaders in investing in tokenized assets.
The regulatory clarity found in Singapore and Hong Kong and the sophisticated market infrastructure available in the two city-states are some of the factors contributing to the high uptake of tokenized assets, says the survey.
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