Thomas Sy, who leads multi-asset solutions at the $800 million asset management firm, emphasizes that blockchain technology can facilitate portfolio constructions that traditional finance cannot.
By Krisztian Sandor|Edited by Jamie Crawley Jul 4, 2026, 8:00 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Thomas Sy, head of multi-asset solutions at New York Life Investment Management (NYLIM)SummaryShow- Thomas Sy from New York Life Investment Management views personalized investing as the most significant opportunity for tokenization.
- He noted that the rise of stablecoins in payments is driving the demand for institutional tokenized investment products that yield returns.
- Sy emphasized the need for improved market infrastructure to support institutional DeFi.
Proponents of tokenization often highlight benefits such as quicker settlement times, continuous trading opportunities, and the ability to utilize tokens in decentralized finance (DeFi) as key advantages of transitioning traditional assets onto blockchain platforms.
In a conversation with CoinDesk, Thomas Sy, head of multi-asset solutions at New York Life Investment Management (NYLIM), argued that the most promising application of this technology lies in transforming the way investment portfolios are built.
Sy, whose team manages around $11 billion within New York Life's $807 billion asset management division, believes that blockchain could enable asset managers to create customized portfolios for individual investors on a large scale, a feat that current financial systems cannot achieve.
According to Sy, "We believe that the future of asset management is going to be customization. The only technology that can help us get there at scale is the blockchain."
This perspective underlines a less emphasized application of tokenization as blockchain initiatives on Wall Street gain momentum. Financial institutions, including banks and asset management firms, are increasingly introducing tokenized formats of money market funds, private credit, and equities, with the expectation that blockchain will modernize financial systems. Citi forecasts that the market for tokenized real-world assets could grow from $30 billion today to $5.5 trillion by 2030.
Recently, NYLIM joined the ranks of major asset management companies by collaborating with Centrifuge (CFG) to launch a high-yield corporate bond strategy on-chain.
For NYLIM, the focus on tokenization is not merely about creating blockchain versions of existing funds but rather enhancing the way portfolios are constructed.
Sy explained that personalized investment strategies frequently integrate assets like ETFs, bonds, and private credit, leading to operational complexities that hinder scalability in personalization.
"The end goal is to embed the customization within the asset itself, rather than the customization sitting around the operations around the different assets," he stated.
Tokenization may also simplify processes such as transfer agency and settlement, potentially lowering costs that would ultimately benefit investors.
"If you can reduce those costs by 10% or 20%, that's a better outcome for our clients," Sy remarked.
DeFi's Potential
Sy noted that stablecoins are serving as an initial effective link for traditional financial entities engaging with blockchain technology.
Currently, the stablecoin market has surpassed $300 billion, and its adoption for cross-border payments is growing.
As banks, fintech companies, and payment processors increasingly utilize stablecoins for international transactions and treasury management, there is a rising expectation for institutional-grade tokenized assets that can generate yields rather than simply remaining in cash.
Sy stated, "Stablecoins were probably one of the biggest unlocks in the past two years. Adopting stablecoins was the gateway to get them on-chain."
He anticipates that this trend will expand the demand for tokenized investment products over the coming years.
NYLIM is also exploring DeFi, although Sy mentioned that broader institutional involvement will necessitate more developed infrastructure, including tokenized collateral, central clearing, and prime brokerage solutions.
"I do think there is a use case for [DeFi], but we need a little bit more time for it to institutionalize," he concluded.
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Why it matters:
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