In a key change for the investment and blockchain fields, tokenization gains ground with hedge funds and institutional investors. The report dated November 5, 2025, notes 52% of hedge fund managers show active interest in tokenized investments. The real-world asset market reaches a value of $35.8 billion as of November 7. This number marks a steady growth in digital asset handling.
Hedge Funds Turn to Tokenization for Efficiency and Access
AIMA and PwC compiled a report by surveying 122 investors and managers who handle nearly $1 trillion in assets. One-third of these funds try or use tokenization for fund units. Finance teams see tokenization as a tool that supports wider investor reach and smoother work.
Managers state that tokenized funds make assets, once hard to reach, open to many. These funds cut delays and may lower costs by shortening settlement times.
Rise in the Tokenized Real-World Asset Market
Data from rwa.xyz shows a quick growth in turning real-world assets into tokens. Money market funds add to this surge with a total market value of $8.7 billion. BlackRock’s USD Institutional Digital Liquidity Fund leads with $2.8 billion in assets held. Next come Circle USYC at nearly $1 billion and Franklin’s OnChain U.S. Government Money Fund at $844 million. These figures show that digital products are drawing strong investor interest.
Small Hedge Funds and Crypto Managers Forge Ahead
Smaller hedge funds with under $1 billion in assets note a 37% interest in tokenized structures, while 24% of larger funds mirror this trend. Macro strategy managers report the highest rate at 67%. Crypto-focused funds also lead the change, with 16% already using or planning tokenized fund units within a year. Eight percent of these firms assign assets to tokenized real-world classes. The numbers stress the early progress in crypto-led tokenization efforts.
Regulatory Hurdles and Infrastructure Breakthroughs
Seventy-two percent of managers point to unclear rules and low investor demand as main blocks to tokenization. In North America, 44% cite legal vagueness as a strong roadblock. In Europe, the Middle East, and Africa, 28% show the same concern, while 9% do in Asia-Pacific. New infrastructure helps manage money and assets via regulated tokenized money market funds and treasuries. These setups bring fast settlement, higher returns, and lower risks. Funds, both traditional and crypto, call for better legal and bank support to push the process forward.
24/7 Trading Reaches Maturity, Say Leaders
Coinbase CEO Brian Armstrong sees tokenization as a way to break old market limits. He said,
"Now, in 2026, many still wait for US systems before they can trade top markets. Fixed trading hours and closed markets feel old. Tokenized assets bring fast, round-the-clock trading to everyone."
This view fits the belief that tokenization can help create global trading that never stops and build steadier financial systems.
The Future: Tokenization in Mainstream Finance
Outlook forecasts show that in the next decade, 15% of hedge fund managers expect tokenized funds to become the norm. Most managers see both tokenized and old systems working side by side, with only a few regarding tokenization as a small idea.
The findings show that tokenization moves from theory to practice. Tokenized funds and cash tools lead the change. Wider use, however, will need rules that are clearer and more demand from investors.
Conclusion
Hedge funds and institutional investors now back tokenization, marking a change in how assets are managed and traded. By turning real-world assets and fund units into digital forms, blockchain makes trading faster, widens access, and smooths operations. As the market grows and rules clear up, tokenization may change how traditional assets are traded in the near future.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with AuCan Gold.
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