A Broadridge survey indicates that Wall Street is ramping up tokenization initiatives while anticipating a blend of digital and traditional asset markets.
By Helene Braun|Edited by Cheyenne Ligon Jul 18, 2026, 2:00 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Peter Macdiarmid/Getty Images)SummaryShow- A significant 84% of financial institutions now view tokenization as a critical strategic focus, with many anticipating its impact on financial markets within five years.
- Hybrid infrastructure is favored by firms, with 92% believing digital and traditional assets will coexist, and 69% planning to incorporate tokenization into their current systems.
- Capital markets firms are at the forefront of this trend, with tokenized mutual funds and money market funds expected to surpass tokenized equities in adoption over the next five years.
According to a recent survey from financial technology provider Broadridge, 84% of financial institutions on Wall Street regard tokenization as essential for their operations.
The survey, which included 200 executives from North American financial services, indicates a shift from mere experimentation with blockchain technology to preparing for a future where tokenized assets are integrated into standard market practices.
Tokenization refers to the conversion of ownership of tangible assets—like stocks, bonds, and real estate—into digital tokens on a blockchain. Advocates argue that this approach can enhance settlement efficiency, reduce operational costs, facilitate round-the-clock trading, and simplify the division of ownership into smaller units.
Interest in tokenization has surged over the last two years as major financial players have initiated their own tokenization projects. Notably, BlackRock's tokenized Treasury fund has evolved into one of the largest blockchain-based investment vehicles, while Franklin Templeton has introduced tokenized money market funds. Additionally, JPMorgan has broadened its blockchain settlement capabilities through its Kinexys platform, and companies like Visa and DTCC are developing the necessary infrastructure for tokenized payments and securities.
This past Wednesday, DTCC achieved a milestone by completing its first live trades involving tokenized securities, marking a significant advancement in the integration of blockchain into conventional financial markets.
Broadridge’s findings suggest that these developments are shaping the industry as a whole. Sixty-eight percent of those surveyed believe tokenization will partially transform financial markets in the next three to five years, with nearly one-third planning to boost their investments in tokenization by 26% to 50% or more within the next two years.
The survey also revealed that firms are not gearing up for an entirely on-chain future. Instead, 92% anticipate that digital and traditional assets will coexist for the foreseeable future, and 69% intend to weave tokenization into their existing systems rather than establishing entirely new blockchain-native platforms.
This strategy aligns with that of many large financial institutions, which are primarily focused on integrating blockchain networks with current trading, custody, and settlement systems rather than overhauling them.
However, the pace of adoption varies across the sector. While 44% of capital markets firms report having tokenization initiatives in place or operating at scale, only 20% of asset managers and 9% of wealth managers can say the same.
The survey also highlighted the areas where firms expect tokenization to gain foothold first. Approximately 80% of participants believe tokenized mutual funds and money market funds will become significant within five years, reflecting the rapid expansion of tokenized Treasury products. In contrast, only around half predict that tokenized equities will see comparable uptake in that timeframe.
Despite the growing interest, companies face significant hurdles. Regulatory uncertainty was identified as the most frequently mentioned obstacle, followed by the challenges associated with integrating blockchain technology into existing financial frameworks.