Tokenisation: apprehension or opportunity?
Which asset class has grown by 118% since the beginning of 2025? No, not gold – although its value has increased an impressive 60% as of 4 December – and not even silver, despite a surge of 97%! The right answer? “Tokenised assets”. Strictly speaking, these are not really an asset class, but rather an innovative way of accessing traditional asset classes. These “tokens” represent a share or right to an asset and can be exchanged on a decentralised digital ledger, or “blockchain”.
A financial revolution? Absolutely – that’s according to Larry Fink, CEO of Blackrock, the world’s largest asset manager. In an article published in The Economist in early December, he argued that tokenisation is still in its infancy and can be compared to what the Internet represented in 1996: immense but fledgling promise. It is true that, to date, cyber tokens linked to so-called “real-world” assets (excluding stablecoins) represent only about $30 billion out of McKinsey’s estimate of $600 trillion in global wealth – the equivalent of less than a single coin in Scrooge McDuck’s famous pool. But their expansion is such that several forecasts expect tokenised assets to represent around $2 trillion by 2030 – and that’s excluding stablecoins.
What do private and institutional investors stand to gain from this development? Increased liquidity primarily, even for asset classes that are typically illiquid: for example, real estate assets can be tokenised and distributed as small, easily exchangeable tokens. The same is true for private assets, works of art, copyrights, etc. Tokenised assets (excluding stablecoins) are currently comprised mainly of private debt, followed by US sovereign debt – a safe-haven asset that can serve as a pioneering position for investors, particularly institutional investors, looking to take their first tentative steps into the world of tokens – then alternative fund units and commodities, particularly gold. This is because anything can be tokenised, including commodities, which are often difficult for private investors to access.
But that’s not all tokenisation has to offer: increased liquidity and disintermediation mean permanent market access, reduced transaction costs and settlement cycles, and automated, secure transactions. For example, the distribution of coupons or dividends can be programmed on the blockchain via smart contracts. In a way, tokenisation represents financial democratisation. The widespread adoption of ETFs was definitely the initial driving force behind this movement. Now it is expanding on a much larger scale thanks to the fact that tokenisation also applies to illiquid assets.
Of course, it goes without saying that this promise is not self-fulfilling. A huge amount of work is needed in terms of security, training and legislation to make it a reality, which comes with challenges and risks. In what makes a pleasant change, for once Europe does not find itself lagging behind in this regard. The Markets in Crypto-Assets (MiCA) legislation, which took effect in early 2025, was Europe’s first step towards regulating crypto-assets at EU level. The United States followed suit in 2025 with the passing of the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins). While this is a step in the right direction, it mainly applies to stablecoins, and so needs to be taken further. There is still much to be done, but legislative competition is fierce. Europe must hurry if it does not want to find itself playing catch-up – not only with the United States, but also with Asia, which has seized upon the issue in the hope of playing a leading role in this revolution. Only those who approach the issue of tokenisation without fear will reap the rewards.
Alexis Bienvenu, Fund Manager, La Financière de l’Échiquier (LFDE)
Final version of 5 December 2025
Disclaimers: The data and opinions provided herein and the stocks mentioned are for information purposes only and thus do not represent an offer to buy or sell securities, investment advice or financial research.