Cybersecurity Policy Report, Tokenization shifting from theory to practice across the fintech industry, survey finds, (Oct 29, 2025)
Organizations Mentioned:Broadridge Financial Solutions
Common standards, regulatory clarity and strong technology partners are still needed to scale offerings.
A white paper released this week by Fintech leader Broadridge Financial Solutions, Inc., “Next-gen markets: The rise and reality of tokenization,” finds tokenization is rapidly moving from theory to practice across the financial services industry.
“Custodians have set the pace with 91 percent citing improvements in efficiency, security, and innovation by offering tokenized assets,” said Germán Soto Sanchez, Broadridge chief product and strategy officer, in a release.
By embedding tokenization into their core infrastructure, custodians are automating settlement, enhancing fund administration and securely managing digital keys, according to the report. Two-thirds, or 63 percent, already offer tokenized assets and an additional 30 percent are expected to offer tokenized assets within two years, Broadridge found.
300 Institutions surveyed. The white paper is based on the 2025 Broadridge Tokenization Survey, which polled 300 financial institutions across North America and Europe and examines how tokenization, the creation of a digital representation of an asset on a blockchain, may be poised to reshape capital markets.
Tokens can represent various types of assets, from traditional financial instruments like equities, bonds, and funds to real assets, such as real estate, commodities, art and collectibles, and even intangible assets, like intellectual property. The digital representation, or token, grants ownership rights and can be exchanged, transferred, or used as collateral.
Staying relevant with investors. The pace of tokenization adoption varies significantly by institution type, the survey found. While custodians have emerged as early-adoption leaders, asset managers and wealth managers are moving cautiously.
Fifteen percent of asset managers surveyed currently offer tokenized products, and 41 percent said they plan to launch them soon, which suggests tokenized asset adoption is becoming a priority. Tokenization offers asset managers a path to stay relevant with investors who are interested in digital assets, the survey found.
Wealth managers have taken a far more cautious approach to tokenized asset offerings: only 10 percent currently offer them, and just 33 percent said they plan to adopt them in the next two years. Many are weighing the perceived benefits of tokenization against added operational complexity and the risk of disintermediation from direct-to-investor platforms.
Barriers to acceptance. In addition, 73 percent of institutions surveyed by Broadridge identified regulatory uncertainty as the biggest challenge to tokenization adoption. Security concerns, infrastructure gaps, and a lack of common standards also were cited as impacting adoption plans.
Firms aren’t calling for deregulation, according to Broadridge, they’re asking for clear, principles-based frameworks that align with traditional finance while supporting innovation.
Cybersecurity debated. Another contested aspect of tokenization is its effect on cybersecurity. According to the 2025 Broadridge Tokenization Survey, the industry is divided on that score: 54 percent of firms believe tokenization introduces new security risks, while 42 percent say it improves security and compliance.
“The reality is that security outcomes depend entirely on execution,” the white paper states. “If tokenized systems are implemented without proper safeguards, including strong encryption, secure key management, or hardened IT environments, they can introduce new vulnerabilities.
“On the other hand, when designed and governed effectively, tokenization can enhance cybersecurity. By replacing sensitive information with tamper-proof digital tokens and leveraging immutable ledgers, tokenized infrastructures reduce attack surfaces and improve auditability.”
Looking to the future. Scaling tokenization offerings will require common standards, regulatory clarity and robust technology partners, the white paper stated. It will also require cultural change, as institutions prioritize tokenization as a core strategy. The difference between a pilot and scaled adoption is the ability to deliver tokenized products at volume, across asset classes, and with the same reliability as traditional securities.
Signals from SEC Chairman Paul Atkins point to progress, according to the white paper. Atkins has identified stock tokenization as a priority, with the SEC planning guidance.
In addition, the SEC is looking to encourage market participants to explore new business models and services through innovation exemptions. Robinhood, Kraken and Gemini are actively trialing tokenized U.S. stock offerings internationally, while also engaging the SEC on their deployment in the U.S., Broadridge noted.
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