Tokenized funds are projected to grow their assets under management ( AUM ) to US$235 billion by 2029, a 58-fold increase from US$4 billion in 2024, a study finds.

Asset managers are turning to tokenized distribution as their fastest route into digital assets, while decentralized finance ( DeFi ) platforms are seeking tokenized money market funds to manage their treasuries and retain investor capital. According to research conducted by ValueExchange for global funds network Calastone, this alignment highlights tokenization as the bridge between traditional asset management and DeFi, which have operated largely independently of each other until now.

Nearly a third ( 28% ) of asset managers plan to distribute tokenized funds by 2030, up from 13% who plan to do so in 2026, the survey shows. Money market funds ( MMFs ) and private asset funds are the most favoured asset classes for tokenization.

Meanwhile, nearly two-thirds ( 65% ) of managers who have already launched a tokenized fund report benefits over traditional models – including automation, improved liquidity, and the ability to reach new investors.

Sentiment shows that asset managers overwhelmingly favour working with technology partners and digital distribution platforms to reach this new market, rather than building in-house capabilities or going direct to investors.  

Asia-Pacific is expected to record the biggest growth in tokenized funds, according to the survey. About 85% of asset managers in the region embrace tokenization, compared to 77% globally. Meanwhile, a third of Web3 and DeFi platforms in the region view tokenized funds as a future priority, in contrast to respondents in Europe and North America who unanimously view tokenized funds as an immediate strategic priority.   

Attractive alternative

Globally, about 80% of DeFi and Web3 platforms surveyed believe tokenized MMFs could improve treasury management. Half of the respondents expect their tokenized holdings will rise by at least 25% by 2030. About 75% believe tokenized MMFs could help them retain client assets, while 40% say they could attract new investors.

Today, most DeFi platforms still rely on traditional money market funds or bank deposits for their cash management, despite operating on decentralized rails. At the same time, DeFi investors are looking for access to these same products on the venues where they already trade crypto, creating a dual layer of demand.    

Tokenized MMFs offer an attractive alternative, combining the safety, liquidity, and yield of traditional products with blockchain-native benefits such as on-chain settlement, integration with digital wallets, and the ability to transact in stablecoins, the study reveals.

Commenting on the findings, Calastone chief technology officer Adam Belding says: “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. Our research shows treasuries are eager for tokenized 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.  

"Tokenization 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 tokenization to compete and win new customers in the DeFi space – now.”