Asset managers eye $235bn tokenisation opportunity as TradFi and DeFi converge

By Newsdesk

September 24 2025
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In a striking revelation, a global survey conducted by Calastone has unveiled a $235 billion opportunity for tokenised funds, highlighting a significant convergence between traditional finance (TradFi) and decentralised finance (DeFi). The survey, which included responses from asset managers and DeFi providers worldwide, suggests that the integration of tokenisation could serve as a crucial bridge between these two financial ecosystems, which have largely operated independently until now.

Asset managers eye $235bn tokenisation opportunity as TradFi and DeFi converge

The research, conducted by ValueExchange exclusively for Calastone, indicates a dramatic growth trajectory for tokenised fund assets under management (AUM). The findings project an increase from $4 billion in 2024 to an astounding $235 billion by 2029, marking a 58-fold surge. This explosive growth underscores the increasing interest and potential of tokenised funds as a gateway to digital assets for asset managers.

Adam Belding, Chief Technology Officer at Calastone, emphasised the transformative potential of this convergence. "DeFi has created a new class of platforms and investors who want to access the same trusted products that underpin traditional markets - but in a way that fits their digital-native infrastructure," he stated. "Our research shows treasuries are eager for tokenised money market funds to manage cash efficiently, while investors want access to them on the same venues where they hold and trade their digital assets."

The survey revealed that nearly a third (28%) of asset managers plan to distribute tokenised funds by 2030, a significant increase from the 13% who intend to do so by 2026. This shift highlights the growing recognition among asset managers of the benefits of tokenisation, such as automation, improved liquidity, and the ability to reach new investors. Nearly two-thirds (65%) of managers who have already launched a tokenised fund reported these advantages over traditional models.

Money market funds (MMFs) and private asset funds emerged as the most favoured asset classes for tokenisation, reflecting their potential to attract a diverse range of investors. The sentiment among asset managers overwhelmingly favours collaboration with technology partners and digital distribution platforms to access this burgeoning market, rather than building in-house capabilities or going direct to investors.

On the other side of the spectrum, DeFi providers have also shown a strong appetite for tokenised funds. The study found that 80% of DeFi and Web3 platforms believe tokenised MMFs could enhance treasury management. Furthermore, 50% of these platforms expect their tokenised holdings to rise by at least 25% by 2030. This growing interest is driven by the desire to combine the safety, liquidity, and yield of traditional products with blockchain-native benefits such as on-chain settlement and integration with digital wallets.

The dual demand for tokenised MMFs among DeFi platforms and investors is evident. While most DeFi platforms still rely on traditional money market funds or bank deposits for cash management, there is a clear demand for access to these products on the venues where they already trade crypto. Tokenised MMFs offer an attractive alternative, providing a seamless integration of traditional finance products within the digital ecosystem.

Belding further commented on the market dynamics, stating, "Tokenisation provides the bridge, enabling asset managers to meet both needs with products that are immediately usable within the DeFi ecosystem. This is where supply and demand finally converge; we have reached a turning point where asset managers can leverage tokenisation to compete and win new customers in the DeFi space now."

Calastone's Tokenised Distribution Solution plays a pivotal role in this evolving landscape. The solution enables asset managers to bring tokenised versions of their existing funds to market quickly and efficiently, without the need to alter their underlying infrastructure. By leveraging the reach of the world’s largest funds network, Calastone aids managers in tapping into new investor cohorts and meeting the rising demand for tokenised products across both traditional and decentralised markets.

As the lines between TradFi and DeFi continue to blur, the potential for tokenisation to revolutionise the financial landscape becomes increasingly apparent. The convergence of these two ecosystems not only presents a significant growth opportunity for asset managers but also paves the way for a more integrated and efficient financial future.

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