Tokenisation, the process of representing financial instruments as digital tokens on a blockchain, is beginning to reshape how structured products are issued, distributed, and settled. For AMCs and ETPs, tokenisation offers potential improvements in settlement speed, transparency, and accessibility.
Tokenised structured products retain the same legal and economic characteristics as their traditional counterparts. The ISIN, legal documentation, and investor protections remain identical, only the settlement and custody layer changes.
Key advantages of tokenisation include near-instant settlement (versus T+2 for traditional securities), 24/7 availability, fractional ownership capabilities, and programmable compliance (automated investor eligibility checks).
The institutional adoption of tokenised securities is still in its early stages. Regulatory frameworks in Luxembourg, Switzerland, and other key jurisdictions are evolving to accommodate digital securities alongside traditional formats.
For asset managers, tokenisation represents an additional distribution channel rather than a replacement for traditional issuance. The most practical approach today is to issue products with both traditional ISIN settlement and optional tokenised representation.
Noray Capital monitors developments in digital securities and is positioned to support tokenised issuance as institutional demand and regulatory clarity continue to grow.
The convergence of structured products and blockchain technology represents one of the most significant developments in securities infrastructure since the introduction of central securities depositories. Asset managers who understand both worlds will be best positioned to capitalise on this evolution.
This article is for informational purposes only and is intended for professional investors. It does not constitute legal, tax, financial or investment advice, nor an offer of any security.