Tokenization has become a strategic priority for 84% of financial firms, according to a new survey from Broadridge Financial Solutions. The finding underscores a broader push on Wall Street to accelerate the use of blockchain-based digital tokens for trading and settlement, even as the industry expects traditional assets to remain central to markets for years to come.
The Broadridge Survey Findings
The survey, which polled financial firms globally, found that more than four out of five now rank tokenization as a strategic priority. Tokenization refers to the process of issuing digital representations of traditional assets — such as stocks, bonds, or real estate — on a blockchain network. The high adoption rate signals that the technology has moved from experimental to mainstream within the financial sector.
Broadridge did not disclose the exact number of respondents or the geographic breakdown, but the figure aligns with growing industry chatter about the potential for tokenized assets to reduce settlement times, lower costs, and improve transparency.
Wall Street's Hybrid Market Bet
Despite the enthusiasm for tokenization, the survey also indicates that Wall Street is not betting on a fully digital future anytime soon. Instead, firms are preparing for hybrid markets where digital tokens and traditional assets trade side by side. This dual-track approach allows institutions to test tokenization in live environments without abandoning existing infrastructure.
Several major banks and exchanges have already launched tokenization pilots or platforms. The hybrid model is seen as a pragmatic way to manage regulatory uncertainty and operational risk while still capturing the efficiency gains that blockchain technology promises.
What Tokenization Means for Markets
In a hybrid market, a bond or stock could exist both as a traditional security and as a token on a blockchain. The token version might settle in minutes rather than days, and could be programmed with smart contracts to automate dividend payments or coupon distributions. For investors, that could mean faster access to funds and lower counterparty risk.
But the shift also raises questions about how regulators will oversee two versions of the same asset, and whether liquidity will fragment across digital and traditional venues. The Broadridge survey suggests firms are aware of these challenges but are moving ahead anyway, betting that the benefits outweigh the complications.
As Wall Street continues to test tokenization in live trading environments, the next few years will reveal whether the technology can deliver on its promise of efficiency and liquidity without disrupting the existing market structure.
