Asset managers reveal $235B tokenisation opportunity as TradFi and DeFi converge

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 target tokenised funds as a gateway to digital assets

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

• 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.

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:

• 80% believe tokenised MMFs could improve treasury management.
• 50% expect their tokenised holdings will rise by at least 25% by 2030.
• 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.”

Calastone tokenised distribution solution

Calastone’s tokenised distribution solution enables asset managers to bring tokenised versions of their existing funds to market quickly and efficiently, without needing to change their underlying infrastructure. By leveraging the reach of the world’s largest funds network, Calastone helps managers tap into new investor cohorts and meet the rising demand for tokenised products across both traditional and decentralised markets.

Re-disseminated by  Wealth and Society