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Steve Henning
Senior Manager, Head of Digital Growth
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How tokenization is transforming the financial industry today
The tokenization of real world assets is revolutionizing the way value is created, traded and invested. By digitally representing physical or traditional assets on the blockchain, these assets become globally accessible, tradable and divisible – thereby opening up new opportunities for companies, investors and markets.
Existing distribution channels are becoming more efficient and more digital. In addition, entirely new distribution channels, such as secondary markets, crypto exchanges or neo brokers, can be unlocked with the help of tokenized assets. This allows companies to align themselves with the preferred investment platforms of young, tech‑savvy retail investors.
However, professional players such as institutional investors, treasurers or corporates also benefit from tokenized RWAs. Tokenized assets enable the near-instant transfer and settlement of transactions. In contrast to traditional securities or fund settlements, which often take several hours or days, tokenized money market funds (MMFs) or other assets can be transferred and settled in real time. As a result, companies can also invest stablecoins to earn interest.
Nevertheless, implementation is demanding. Regulation, governance and data quality, as well as integration into the core system environment, are among the challenges many companies face. The business case, target operating model and the selection of the right partners must be defined at an early stage. A structured approach is critical: business expertise combined with technology and compliance expertise. This is how tokenization moves from experimentation to value creation – from the first use case to productive operations.
Why now? Infrastructures are maturing, institutions are professionalising, and demand for digital, liquid and transparent offerings is rising.
How does the tokenization of assets work?
First of all, it is advisable to ensure conceptual clarity. And for this, the following applies: blockchain ≠ crypto.
Digital assets are all assets that exist in digital form and have an economic value. These include, for example, tokenized securities, digital bonds, digital fund units or stablecoins.
Crypto (or cryptocurrencies) are a subcategory of digital assets. They are purely digital, mostly unregulated means of payment or stores of value (such as Bitcoin or Ether) that have no real underlying value or issuer.
Blockchain forms the technological foundation of digital assets. It represents decentralised, transparent and secure data storage.
Smart contracts automate processes such as payouts and returns using programmable ‘if‑then’ logic. For example, once a potential investor meets defined KYC requirements, the transaction is executed automatically.
Tokenization represents the digital ownership of the physically existing asset. In practice, tokenization is often carried out indirectly. In this case, for example, a real estate property is transferred into a special purpose vehicle (SPV), and investors acquire digital shares (tokens) in this entity. These tokens therefore represent the economic ownership of the property, not the direct land register title.
The same principle applies to other asset classes: In the case of funds or bonds, the underlying rights and claims are digitally securitized and issued as tokens.
Tokenization thus creates a digital, tradable representation of economic ownership, while the legal structure (e.g. SPV, fund vehicle) continues to ensure the link to the real asset.
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Specific use cases exist – we help to scale them
- Real asset tokenization
- Tokenized commodities
- Tokenized funds
- Digital bonds & bond tokenization
- Tokenized derivatives
- Structured financial products
- Loans & Receivables
- Private Debt vs. Private Equity
- Stablecoins as enablers
Real asset tokenization
Tokenized real assets – whether real estate or infrastructure such as renewable energy – enable access to traditionally illiquid markets. Digital fractionalization creates new investor groups, more efficient financing models and faster capital flows. For project developers, banks and asset managers, this results in lower transaction costs, higher liquidity and a modern, transparent settlement infrastructure.
Tokenized commodities
Commodities such as gold, silver or industrial metals are in global demand – tokenization removes many logistical and regulatory barriers in the process. Digital commodity tokens enable 24/7 trading, real-time ownership and efficient custody. This is particularly attractive for asset managers, exchanges, and banks seeking to offer new regulated digital commodity products or simplify existing processes.
Tokenized funds
Tokenized fund units increase tradability and reduce operational complexity. Distributions, NAV calculation and order processes can be automated via smart contracts. Asset managers reach new target groups (including younger investors and B2B2C partners), while distributors benefit from faster settlement and lower operating costs. Ideal for fund providers looking to digitally expand their product portfolio.
Digital bonds & bond tokenization
Digital bonds enable fully automated issuance and settlement – without manual workflows or multi day settlement cycles. Programmable rules allow coupons, corporate actions and reporting to be handled efficiently. Companies shorten their time to market, banks reduce risks, and investors benefit from greater transparency. Particularly relevant for debt capital markets teams.
Tokenized derivatives
(especially FX swaps)
FX swaps are among the highest volume financial instruments worldwide. Through tokenization, settlement, collateral management and bilateral risks can be significantly reduced. Real time settlement, declining counterparty risks and lower operational effort make this model attractive for treasury departments, banks and trading platforms. Ideal for institutions aiming to modernize FX processes and reduce costs.
Structured financial products
(e.g. certificates, warrants)
Structured products particularly benefit from the programmable nature of digital securities. Tokenization enables transparent product logic, faster issuance and automated lifecycle processes. Retail brokers, issuers and exchanges can manage products more efficiently and launch new digital product lines – at lower cost and with greater speed.
Loans & Receivables
Corporate loans and receivables can be financed more flexibly through tokenization. Digital tokens enable faster placement, simple fractional ownership and automated repayment processes. Particularly attractive for financiers, leasing companies and corporates seeking to manage liquidity more efficiently or tap into alternative sources of financing.
Private Debt vs. Private Equity
Private debt and private equity are among the fastest-growing segments of alternative investments. Through tokenization, both asset classes become significantly more accessible, efficient and transparent. Private debt particularly benefits from automated payment flows, faster placement and improved tradability of loan receivables. Private equity, in turn, gains from digital units that enable early liquidity pools, simplified secondary trades and a broader investor base. Particularly relevant for private capital managers, family offices, corporate finance providers and digital wealth platforms looking to scale their offering.
Stablecoins as enablers
Stablecoins form the backbone of many digital RWA models, as they enable instant, cost efficient and transparent transactions. They reduce settlement risks, facilitate cash management in digital markets and serve as a bridge between fiat and on chain ecosystems. For banks, brokers and fintechs, they are a key building block for more efficient, global payment and settlement processes.
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