June 12, 2024

From Crypto Adoption to a Tokenised Future

In Q2 of 2024, WBR Insights surveyed 100 of the most senior figures working in digital assets. These included Chief Investment Officers, Heads of Trading, Portfolio Managers, and other executives. Participants shared their insights on the industry-wide challenges they face and the innovative solutions they are bringing to the table.

From Crypto Adoption to a Tokenised Future

✔️ 7 contributors interviewed

✔️ 10 of the most senior executives in digital assets surveyed

✔️ 22 pages on insightful trends

Key Takeaways:

Cryptocurrency is on the rise and firms are already allocating a significant proportion of their portfolios accordingly. The majority of our respondents (35%) have allocated between 11 and 20% of their portfolios to crypto. Meanwhile, just one respondent said they are yet to allocate any of their portfolios. Interestingly, many believe this trend will increase over the next 12 months, indicating significant industry change is on the horizon.
Blockchain technology is being embraced across the board. Respondents believe it can benefit many areas of traditional finance operations, including smart contracts and automation (79%) and regulatory compliance (64%). While adoption is growing, there are challenges to overcome. Specifically, a talent gap in the blockchain space and internal resistance from stakeholders could act as roadblocks on the path to mainstream integration.
The tokenization of securities and funds is gaining significant traction. Encouragingly, 71% of respondents are either already tokenized or are looking to tokenize hedge funds. While our research suggests the majority might be ‘looking’ to tokenize hedge funds, the overall interest is highly positive. Fixed-income securities are also a target for tokenization, with 54% actively involved and 51% looking for private equity. Not a single respondent said they were not looking to tokenize securities or funds.
The digitization of traditional asset classes is in full swing with 50% of respondents already reporting partial implementation. While 7% already consider their digitization process to be fully implemented, all respondents recognize its potential. Many are doing so because it improves transparency (64%) and allows for enhanced market access (63%). However, hurdles remain and firms face barriers to their digitization efforts, including security concerns (61%), privacy and data protection (57%), and scalability issues (57%).