Tokenization is a top priority for 84% of financial firms, according to a new industry survey. But the same research shows regulatory uncertainty remains the biggest hurdle to adoption.
What tokenization means for finance
Tokenization refers to the process of creating digital tokens on a blockchain that represent real-world assets — from bonds and stocks to real estate and commodities. The tokens can be traded, settled, and transferred more efficiently than traditional paper-based or centralized systems. For financial firms, the appeal is clear: faster transactions, lower costs, and the ability to reach new investors.
The survey, which polled executives across banks, asset managers, and fintech companies, found that nearly nine out of ten firms are actively working on or planning tokenization projects. That's a strong signal that the industry sees this as a core part of its future.
Why the push now
Several factors are driving the urgency. Clients increasingly expect digital-native services. Competitors — especially crypto-native firms and decentralized finance platforms — are already offering tokenized products. And the technology has matured enough that large institutions feel comfortable experimenting with it.
But the survey also highlights a major obstacle: unclear rules. Regulatory frameworks for tokenized assets vary widely by jurisdiction, and in many places they don't exist at all. Firms are hesitant to commit significant resources when the legal ground could shift.
The regulatory hurdle
Regulatory uncertainty was cited as the top barrier by survey respondents. Without clear guidance on how tokenized assets are classified, taxed, and governed, firms worry about compliance risks. Some are waiting for regulators to set standards before launching large-scale projects. Others are moving ahead in limited ways, often in sandbox environments or with specific exemptions.
The survey didn't name any specific regulators or propose solutions. But the message from the industry is consistent: they want rules of the road. Until those rules are clear, the full potential of tokenization may remain out of reach.
For now, financial firms are watching for signals from regulators in major markets like the U.S., the European Union, and the U.K. The next few months could bring new guidance — or more uncertainty.
