Tokenized Products Popular Among Institutional Investors: BNY Mellon Survey

Tokenized Products Popular Among Institutional Investors: BNY Mellon Survey.

It has been found that institutional investors are highly interested in tokenized products, according to a survey conducted by the Bank of New York Mellon (BNY Mellon). 

Most Respondents Interest into Tokenized Products

According to the survey, which included 271 institutional investors, 90% of respondents are interested in investing in tokenized products.

“91% of respondents expressed interest in investing in tokenized products,” cited the report.

“Benefits of tokenization include removing friction from transfer of value (84%) and increasing access for mass affluent and retail investors (86%). Every asset manager surveyed with more than $1 trillion assets under management (AUM) is interested in investing in tokenized products,” it detailed.

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The Tokenization Will Revolutionized The Asset Management Industry

In a survey, 97% of respondents believed that tokenization would revolutionize asset management. Among the assets that institutional investors most desire tokenization are private equity and hedge funds.

Based on the survey, tokenization provides access to novel asset classes, among other advantages.

“Most important tokenization benefits are access to new or non-standard asset classes and the immutability and transparency of data.Other benefits include increased liquidity and reduced friction (e.g., faster settlement).Support for fractional ownership and lower costs via tokenization were rated least important,” according to the Survey.

The BNY Mellon study found that Hong Kong and Singapore are currently leading the world in investing in tokenized assets.

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A survey shows that Singapore and Hong Kong are two of the city-states with a high uptake of tokenized assets due to their clear regulations and sophisticated market infrastructure.

Accordingly, 88% of institutional investors are comfortable using blockchain technology to represent cash digitally. Aside from this, investor demand for digital assets and maturing infrastructure are speeding up adoption.

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Jamilatul Mahmudah

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