Tokenization · CoinDesk
BNY sees 'FOMO' driving asset managers into tokenized funds
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As tokenization moves from industry experiment to commercial product, asset managers are rushing to establish a foothold in the market.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- Wall Street believes that blockchain networks could eventually become a new distribution channel for traditional investment products
- We have several different projects in flight, different variants to effectively tokenize ETFs," Ben Slavin, global head of exchange-traded funds (ETFs) at BNY, said in an interview
- That dynamic has become a growing topic of discussion among BNY's asset-management clients as they evaluate their own tokenization strategies
Summary
Asset managers are accelerating plans to tokenize ETFs, driven by investor demand and concerns about missing an early opportunity in blockchain-based finance. BNY says firms are moving ahead with tokenized fund products despite unresolved questions around regulation, trading infrastructure and market structure. Issuers face growing reputational risks as third parties create tokenized versions of existing ETFs that can trade outside traditional financial markets without their involvement. "We have several different projects in flight, different variants to effectively tokenize ETFs," Ben Slavin, global head of exchange-traded funds (ETFs) at BNY, said in an interview.