Custodians lead tokenization adoption as industry moves to scale

Regulatory uncertainty is the most cited obstacle, named by 73% of respondents. 

Tokenization is shifting from concept to implementation across the financial industry, with custodians leading adoption, according to a new report from Broadridge Financial Solutions.

The report noted 63% of custodians already offer tokenized assets, and an additional 30% plan to do so within the next two years.

Perceived benefits are a key driver. Among custodians, 91% cited improvements in efficiency, security, and innovation as reasons for adopting tokenization. Early adopters reported four to five concrete benefits, compared to fewer than three among non-adopters.

The pace of adoption varies by segment. Among asset managers, 15% are currently live with tokenized offerings, with 41% planning to follow. Wealth managers trail slightly, with 10% live and 33% planning rollout within two years.

Broadridge attributed the slower uptake in this segment to operational complexity and concerns around disintermediation.

However, barriers remain. Regulatory uncertainty is the most cited obstacle, named by 73% of respondents. Other challenges include security concerns, infrastructure limitations, and a lack of common industry standards.

To scale tokenization industry-wide, the report highlighted the need for clear standards, regulatory clarity, reliable technology partners, and a cultural shift that embeds tokenization as a core strategy across asset classes—with the same reliability as traditional systems.