Tokenization of funds can help fund managers act efficiently while reducing operational costs, as well as helping to drive digital adoption by simplifying interactions between fund managers and investors. But there’s more to the tokenization story. While there are many rewards to tokenized funds, the inconsistent regulations governing them present a challenge.

Driven by both investor demand for enhanced digital and data capabilities, and ongoing fee pressures, asset managers are increasingly taking an interest in tokenized funds. By utilizing blockchain networks to issue shares, fund managers hope to reduce the costs of operation and distribution while increasing assets under management and transforming the experience of their customers.