Justin Christopher: «Tokenized Distribution: From Pilots to Products»
Tokenization is entering a more decisive phase. The conversation is shifting away from whether blockchain can support regulated investment products and toward how firms can use tokenized rails to reach new pools of demand without compromising control, compliance, and operational resilience, writes Justin Christopher, Head of Asia at Calastone, in his outlook for finews.asia.
Calastone’s recent global research, «Empowering Digital Distribution: The Strategic Rise of Tokenised Funds», points to a clear trajectory: tokenized funds are on course to expand materially, with tokenized fund AUM forecast to reach $235 billion by 2029, representing a 58x increase from 2024.
At the same time, tokenized distribution is becoming an increasingly near-term priority, with 13 percent of managers planning to distribute tokenized funds in 2026, rising to 28 percent by 2030.
What is changing fastest is the «why» behind adoption.
Benefits of Tokenized Distribution
Tokenized distribution is being pulled by clear demand for on-chain access to familiar, regulated exposures, particularly cash and yield instruments. In our study, money market funds and private asset funds emerged as the most favoured asset classes for tokenized distribution. This aligns with what decentralised finance and Web3 participants are increasingly looking for: better treasury efficiency, improved liquidity management, and access to real-world yield without leaving the on-chain environment.
Calastone’s survey revealed that 80 percent of DeFi/Web3 respondents believe tokenized money market funds could improve treasury management, while 50 percent expect tokenized holdings to rise by at least 25 percent by 2030.
Asset Managers Get in on the Action
For asset managers, the practical implication is that tokenization does not need to begin with rebuilding the entire fund operating model. It can begin with distribution, making the fund unit compatible with blockchain rails while maintaining existing governance, servicing arrangements, and investor protections. That distribution-led approach also reflects how managers want to execute.
Our research shows a strong preference for partnership-based models and outsourced capabilities, with technology partners seen as a Day 1 priority. Digital exchanges and distribution platforms are also favoured routes to market, reinforcing that scale is more likely to come through ecosystem connectivity than stand-alone builds.
Rise of Asia
Asia is playing a visible role in this transition, not simply through experimentation but through market signals that tokenized products and supporting frameworks are advancing in parallel. Hong Kong, for example, has seen tokenized fund launches in the money market category, alongside a clearer direction of travel on stablecoin oversight – an important development because tokenized distribution scales fastest when the asset leg and the payment leg evolve together.
The Monetary Authority of Singapore (MAS) also launched its «Bloom» initiative, which will enable settlement in tokenized bank liabilities and well-regulated stablecoins, whilst effectively managing risks in the rapidly evolving digital settlement asset landscape, through standardised approaches.
Difference Makers in 2026
That payment leg, digital cash, will be a defining theme for 2026. Stablecoins, tokenized deposits, and, over time, CBDCs can reduce friction in subscriptions and redemptions, support shorter settlement cycles, and improve capital efficiency.
Our research suggests the market is preparing for a multi-rail future: managers increasingly expect to support more than one form of settlement, and bank-issued stablecoins are viewed favourably as an institutional bridge between traditional banking frameworks and on-chain settlement.
Our view is that 2026 will be characterised by interoperability and orchestration. The firms that progress fastest will be those that can connect regulated funds into tokenized distribution venues, support evolving forms of digital cash, and do so with the controls that distributors, regulators, and institutional investors require.
Tokenization is moving beyond isolated pilots and toward repeatable distribution capability, expanding addressable demand while improving efficiency across the investment lifecycle.
Justin Christopher is a managing director and the head of Asia at Calastone. The firm is headquartered in London and has offices in Luxembourg, Hong Kong, Taipei, Singapore, New York, and Sydney. Calastone provides the world's largest global funds network. Christopher has over 20 years’ experience in the financial services industry. His most recent roles include chief operating officer at Link Fund Solutions (part of the Link Group), managing director, custody services at One Investment Group, and head of clearing, custody services, and product for BNP Paribas Securities Services Australia and New Zealand.
