Technology offers fascinating perspectives for the asset management industry. These include tokenisation, the process of creating a digital representation of non-digital assets on a blockchain.
Co-authored by specialists from our digital transformation and private debt and real assets teams along with the Chartered Alternative Investment Analyst Association (CAIA) and Hong Kong-based tokenisation platform Liquefy, this new research paper explores the application of tokenisation in enabling investors to gain fractional ownership of alternative asset classes.
Tokenisation could contribute to addressing some of the inherent challenges – for both investors and asset managers – of the alternative asset classes by:
- Improving liquidity – the tokens could be traded on secondary markets, improving liquidity.
- Enabling faster, cheaper transactions – less complexity and greater operational efficiency can reduce transaction and lifetime costs enabling faster, cheaper transactions.
- Offering greater transparency – the token holder’s rights, legal responsibilities and record of ownership could be embedded into tokens, offering greater transparency.
- Broadening access – tokens would provide access for more investors to previously unaffordable or insufficiently divisible asset classes.
Tokenisation of Alternative Investments is our contribution to the debate about the potential future applications of digital technologies in asset management.
Watch the video with author Emmanuelle Pecenicic on Tokenisation of Alternative Investments
