This report examines fund tokenization, the use of distributed ledger technology (DLT) to represent fund shares as digital tokens, and its potential to transform asset management.

• Market Opportunity: Fund tokenization has significant growth potential, with market estimates reaching up to $1 trillion by 2030.

• Process: The report outlines the fund tokenization process, emphasizing stakeholder alignment, legal/regulatory considerations, and technology implementation.   

• Benefits: Tokenization offers benefits like enhanced liquidity, operational efficiency, improved collateral mobility and broader financial inclusion.   

• Applications: The report provides examples of tokenized funds, including money market and private equity funds. 

Fund tokenization presents a substantial opportunity for the asset management industry, requiring standardization and collaboration for widespread adoption.