Private equity and hedge fund assets are the most likely to see relevant levels of tokenisation as the market begins to build, new global research from tokenisation platform Token City shows.
Private equity and hedge fund assets are the most likely to see relevant levels of tokenisation as the market begins to build, new global research from tokenisation platform Token City shows.
The study, conducted among fund managers in France, Spain, Germany, Switzerland, and the UK who are responsible for around USD546.5 billion in assets under management, found 73 per cent identified private equity assets and 65 per cent pointed to hedge fund assets as most likely to be the first to see significant levels of tokenisation.
The World Economic Forum estimates that up to 10 per cent of global GDP will be stored and transacted via DLT by 2027 and that tokenised markets could potentially be worth as much as USD24 trillion by 2027.
Madrid-based Token City’s research shows most fund managers (93 per cent) believe alternative asset classes are more likely to be targeted for tokenisation because of their lack of liquidity, transparency, and accessibility by comparison with traditional asset classes.
Private equity and hedge fund assets are out in front as the alternative asset classes regarded as most likely to be the first to attract relevant levels of tokenisation – however 58 per cent point to private debt and more than half (55 per cent) identify venture capital assets as strong areas for growth. Around 41 per cent say real estate could be the first sector to see significant levels of tokenisation while just 8 per cent point to infrastructure.
