Regulated asset managers can explore blockchain-compatible fund units, distribution partnerships and multi-rail settlements to enhance treasury operations under evolving oversight.
Some players in the DeFi and investment tech industry assert that in 2026, the conversation is shifting away from whether blockchain can support regulated investment products, and towards how firms can use tokenized rails to reach new pools of demand without compromising control, compliance and operational resilience.
According to Justin Christopher, Head of Asia, Calastone, tokenized funds are on course to expand materially by 2029. He believes that tokenized distribution will become an increasingly near-term priority.
Note that tokenization trends target operational efficiencies for regulated asset managers, focusing on treasury and distribution rather than speculative trading. This article outlines steps grounded in institutional pilots, prioritizing compliance over yield-chasing experiments amid regulatory scrutiny.
Prioritizing asset classes
Christopher highlighted demand for regulated exposures such as cash equivalents in on-chain settings, favoring specific fund types for initial tokenization:
- Target money market funds first: These address treasury efficiency and liquidity management for on-chain yield without full infrastructure changes.
- Explore private asset funds next: They align with needs for real-world yield while staying within blockchain environments.
Execution roadmap
Firms can start small via distribution while preserving existing operations, as Christopher outlined practical steps for controlled adoption:
- Adopt a distribution-led approach: Tokenize fund units for blockchain compatibility, retaining current governance and investor protections
- Pursue partnerships early: Outsource to technology providers and digital platforms for ecosystem scale over standalone development
- Prepare multi-rail payments: Integrate stablecoins and tokenized deposits to reduce settlement friction and support shorter cycles
- Focus on interoperability: Connect regulated funds to tokenized venues with compliance controls for repeatable distribution
Firms implementing these strategies can address backend frictions in fund lifecycles, enabling controlled expansion into on-chain demand without exposing operations to volatile speculation risks. This enterprise approach underscores tokenization’s maturation beyond pilots, as compliance frameworks solidify in 2026.
These steps suggested by Christopher could position firms to navigate 2026’s tokenization shift from experimental pilots to operational reality, expanding market access through efficient, compliant distribution channels while managing risks across the investment lifecycle.
