Asset managers bet on $235bn tokenisation as DeFi demand surges

By Puja Sharma

TradFi and DeFi are no longer circling each other; they’re colliding. A new $235 billion tokenisation wave signals that asset managers and crypto-native platforms are finally meeting on the same rails, with tokenised funds emerging as the bridge between Wall Street and Web3.

A global survey by Calastone of asset managers and decentralised finance (DeFi) providers reveals a $235 billion opportunity for tokenised funds, driven by a powerful convergence between traditional asset management and DeFi. Asset managers are turning to tokenised distribution as their fastest route into digital assets, while DeFi platforms are seeking tokenised money market funds to manage their treasuries and retain investor capital. This alignment highlights tokenisation as the bridge between two financial ecosystems that have until now operated largely apart.

Asset managers seek tokenised distribution of traditional funds as a gateway to digital assets

Sentiment shows that asset managers overwhelmingly favour working with technology partners and digital distribution platforms to reach this new market, rather than building in-house capabilities or going direct to investors.

DeFi providers show strong appetite for tokenised funds

The study also surveyed DeFi and Web3 platforms to understand demand for tokenised products. Key findings included:

• Around 80% believe tokenised MMFs could improve treasury management.
• About 50%expect their tokenised holdings will rise by at least 25% by 2030.
• Over 75%say tokenised MMFs could help them retain client assets, while 40% believe they could attract new investors.

Today, most DeFi platforms still rely on traditional money market funds or bank deposits for their cash management, despite operating on decentralised rails. At the same time, the research reveals that DeFi investors are looking for access to these same products on the venues where they already trade crypto, creating a dual layer of demand. Tokenised MMFs offer an attractive alternative, combining the safety, liquidity and yield of traditional products with blockchain-native benefits such as on-chain settlement, integration with digital wallets, and the ability to transact in stablecoins.

A market at the point of convergence

Commenting on the findings, Adam Belding, Chief Technology Officer at Calastone, said, “DeFi has created a new class of platforms and investors who want to access the same trusted products that underpin traditional markets – but in a way that fits their digital-native infrastructure. Our research shows treasuries are eager for tokenised money market funds to manage cash efficiently, while investors want access to them on the same venues where they hold and trade their digital assets. Tokenisation provides the bridge, enabling asset managers to meet both needs with products that are immediately usable within the DeFi ecosystem. This is where supply and demand finally converge; we have reached a turning point where asset managers can leverage tokenisation to compete and win new customers in the DeFi space now.”

The research, conducted by ValueExchange exclusively for Calastone, surveyed asset managers worldwide and found:

Key Takeaways

• Tokenised fund AUM is projected to grow from $4 billion in 2024 to reach $235 billion by 2029, a 58-fold increase.
• Nearly a third (28%)of asset managers plan to distribute tokenised funds by 2030, up from 13% who plan to do so in 2026.
• Money market funds (MMFs)and private asset funds were the most favoured asset classes for tokenisation.
• Nearly two-thirds (65%) of managers who have already launched a tokenised fund report benefits over traditional models – including automation, improved liquidity, and the ability to reach new investors.