Is tokenization the future of private wealth?

August 26th Is tokenization the future of private wealth?

Blockchain-based tokenization has gained traction, and advanced family offices have unique opportunities to access secure, global and efficient financial products.

The architecture of global capital markets has remained largely unchanged for decades. It is centralized, limited by geography, and constrained by delayed settlements and inefficiencies. But behind the Bitcoin volatility headline is a new investment structure in assets.

Asset tokenization powered by blockchain technology can enable assets from US Treasury invoices to substitutes and real estate to be digitally represented, safely exchanged and resolved in real time.

For family offices and trustees looking for returns to hit potential intergenerational inflation, tokenization can provide wider access, greater options, faster action, and cost-effectiveness of a portfolio.

What does it actually mean?

Tokenization refers to the creation of digital tokens on the blockchain that represent ownership of the underlying asset. For example, tokenized bonds retain all of their traditional features, such as coupons, maturity, issuer terms, and more, but exist as a transferable and tradable digital asset every 24 hours.

This generates multiple efficiencies. Issuers have access to capital without a tier of intermediaries and can do it from a wider investor base. Similarly, investors benefit from real-time settlements, transparent ownership records, and the ability to trade less. For family offices with a diversified global portfolio, tokenization offers operational flexibility, simplified compliance and better visibility into asset performance.

In short, tokenization does not bypass traditional systems – it improves it.

Increased access to real-world recruitment and investment opportunities

Adoptions are accelerating, with some innovative family offices taking notes. Tokenized products from BlackRock, Franklin Templeton and Janus Henderson, for example, tripled in 2025, with the total assets of tokenized US financial products increasing 80% in 2025 to $7.5 billion.

What once was the realm of crypto traders has now evolved and matured into a reliable capital allocation tool, both in short-term cash management and long-term investment strategies. Some institutional investors now use these assets as collateral for derivative transactions, increasing capital efficiency and operational flexibility.

Above all, tokenization expands access to high-quality, potentially sophisticated investment opportunities that are not otherwise available to small institutional investors, such as litigation financing, microlending and dependent obligations issued by local credit unions.

It can be difficult for small institutional investors to access these types of opportunities. Many major markets require investors to meet minimum assets and/or income thresholds before being allowed to invest in private issuance. This also means that over the past decades, fewer investors have been excluded from the major valuation uplifts offered by some of the world’s largest companies today.

With the decline in stock markets listed in many parts of the world, starting access to opportunities presented in the private investment sector, whether it be real assets, private equity, ventures, credits or other alternatives, will improve the options and options available to investors, including family offices.

Built-in compliance, not adjustment loopholes

Naturally, some skepticism about crypto-related concepts remains among investors, particularly with regard to their early connections to anonymous crypto transactions. However, tokenized securities are not part of their anonymity.

The main platform uses customer (KYC) tools directly embedded in blockchain protocols. For example, Liquid Network, a sidechain built on Bitcoin, includes a “whitelist” feature that allows only approved and verified participants to trade certain tokens. This level of granted access combines a full audit trail to give trustees and trustees trust in both security and compliance.

Looking ahead

Tokenization does not tend to pass. This is a structural evolution of how assets are issued, held and traded. Although total recruitment will take time, McKinsey’s basic case predicts a $2 trillion market by 2030, but the direction of travel is clear. Private capital is already in motion, and regulators are beginning to provide clarity.

Family offices have always wanted real profits across generations. Tokenized assets present compelling and accessible investment opportunities suitable for both digital ages. And perhaps most importantly, these assets coincides with the growing expectations of young beneficiaries, digitally native, valuable, seamless and flexible financial experience.