Tokenisation in Capital Markets: Is It the Next Frontier After AI?
Updated: Oct 7
The financial services industry has witnessed a dramatic shift in technology adoption over the past year. Artificial intelligence (AI) moved from experimental pilots to widespread operational use in 80% of firms surveyed by Broadridge. Now, many of these firms are turning their attention to tokenisation as the next major infrastructure change. But is tokenisation truly the next frontier after AI? This post explores recent research findings, the reasons behind this shift, and what it means for capital markets.
What Recent Research Reveals About Technology Adoption
Broadridge’s 2026 Digital Transformation and Next-Gen Technology Study surveyed 950 participants from the financial services sector. The results show a rapid acceleration in adopting new technologies:
AI adoption jumped from 31% to 80% in operational use within a year.
54% of firms are investing moderately to heavily in tokenisation and digital asset infrastructure.
Blockchain technology interest increased from 42% to 55% as a pathway to growth.
This data suggests the industry is not only embracing AI but also preparing for the next wave of innovation centred on tokenisation. Firms that have built the capacity to deploy AI quickly are now applying that momentum to tokenisation projects.
Why Tokenisation Matters for Capital Markets
Tokenisation refers to converting ownership rights of assets into digital tokens on a blockchain or similar distributed ledger. This process can transform how securities are issued, traded, and settled. The key benefits include:
Faster settlement times: Traditional markets often settle trades in one or two business days (T+1 or T+2). Tokenisation combined with AI-driven automation can enable near-instant settlement (T+0), reducing counterparty risk and freeing up capital.
Increased transparency: Blockchain records provide an immutable, real-time audit trail of transactions.
Improved liquidity: Tokenised assets can be fractionalised, making it easier for smaller investors to participate.
Lower costs: Automation and reduced intermediaries can cut operational expenses.
Germán Soto Sanchez, Broadridge’s chief product and strategy officer, highlights that AI has proven the industry can modernise quickly. Tokenisation is the next structural evolution that builds on this foundation, especially by targeting settlement efficiency.
How AI and Tokenisation Work Together
AI and tokenisation are not separate trends but complementary technologies. AI enhances tokenisation efforts by:
Automating complex processes such as compliance checks, trade matching, and risk management.
Predicting market trends to optimise token issuance and trading strategies.
Monitoring blockchain networks for anomalies or fraud in real time.
For example, a firm using AI to analyse trading patterns can automatically trigger tokenised asset settlements once conditions are met, reducing manual intervention and errors. This synergy accelerates the move toward continuous, real-time capital markets.
Practical Examples of Tokenisation in Action
Several financial institutions and platforms have begun deploying tokenisation with promising results:
Security token offerings (STOs): Companies issue digital tokens representing shares or bonds, allowing global investors to participate without traditional barriers.
Real estate tokenisation: Property ownership is divided into tokens, enabling fractional investment and easier transfer of assets.
Digital asset custody: Firms use tokenisation to securely hold and transfer assets on blockchain networks, improving transparency and reducing settlement delays.
These examples show tokenisation’s potential to reshape various asset classes and market functions.
Challenges to Overcome
Despite the promise, tokenisation faces hurdles before widespread adoption:
Regulatory uncertainty: Laws around digital assets and tokenised securities vary widely across jurisdictions.
Technology integration: Legacy systems must connect seamlessly with blockchain platforms.
Market acceptance: Investors and intermediaries need education and trust in new processes.
Scalability: Blockchain networks must handle high transaction volumes efficiently.
Addressing these challenges requires collaboration between regulators, technology providers, and market participants.
What This Means for Financial Services Firms
Firms that have successfully scaled AI deployments are well-positioned to lead tokenisation initiatives. The shift to tokenisation is not just a technology upgrade but a fundamental change in market infrastructure. Companies investing now can gain competitive advantages through:
Faster, more efficient settlements
Access to new investor segments
Reduced operational risks and costs
Enhanced transparency and compliance
The next few years will likely see tokenisation move from pilot projects to core market functions.
Disclaimer: This article is provided for general information only and does not constitute legal, financial, or investment advice. The regulatory treatment of tokenised assets and digital securities varies by jurisdiction and continues to evolve. Readers should seek independent professional advice before making any financial, legal, or regulatory decisions.
Background: what the Broadridge study measured
Broadridge published the findings on 25 February 2026. It is the sixth edition of its annual Digital Transformation and Next-Gen Technology Study, carried out by Phronesis Partners among more than 900 technology and operations leaders at wealth management, capital markets and asset management firms worldwide.
Beyond the headline investment figure, 53 per cent of respondents said distributed ledger technology will dramatically change how assets are settled, and 70 per cent said external partnerships will be critical to capturing value from tokenised infrastructure. Respondents expect a significant share of equities, mutual funds and alternatives to be tokenised within four to five years. The risks they named most often were cybersecurity, cited by 64 per cent, and increased valuation risk, cited by 55 per cent, alongside regulatory uncertainty, interoperability and market fragmentation. A majority described tokenisation as a structural evolution of market infrastructure rather than a near-term replacement for existing systems.
What it means for UK founders
The UK is changing its settlement plumbing on a fixed timetable. UK trades currently settle on a T+2 cycle, and the market moves to T+1 on 11 October 2027 under a draft statutory instrument published by the Government in November 2025. In parallel, the Bank of England and the FCA opened the Digital Securities Sandbox to applications in September 2024, giving firms a supervised route to test the issuance, trading and settlement of digital securities under modified rules.
For founders building tokenisation infrastructure, the 70 per cent partnership figure is the most practical signal. Large incumbents expect to buy or partner rather than build alone, so startups that can show regulatory readiness, security controls and integration with existing systems are better placed. Founders considering the sandbox route may want to take professional advice on eligibility and on which activities need FCA authorisation.
Key facts at a glance
Broadridge released its 2026 study on 25 February 2026.
54 per cent of firms report moderate to large investment in tokenisation and digital asset infrastructure.
70 per cent say external partnerships will be critical to capturing value from tokenisation.
Cybersecurity is the most cited risk, at 64 per cent.
The UK moves from T+2 to T+1 settlement on 11 October 2027.
The Digital Securities Sandbox opened to applications in September 2024.
Sources
Frequently asked questions
What did Broadridge's 2026 Digital Transformation and Next-Gen Technology Study find about tokenisation?
The study surveyed 950 participants from financial services. It found that 54% of firms are investing moderately to heavily in tokenisation and digital asset infrastructure, and interest in blockchain as a pathway to growth rose from 42% to 55%.
How quickly has AI adoption grown in financial services?
According to Broadridge, operational use of AI among firms surveyed jumped from 31% to 80% within a year.
What are the benefits of tokenisation in capital markets?
Key benefits include faster settlement, potentially near-instant (T+0) when combined with AI-driven automation, increased transparency through blockchain records, improved liquidity through fractionalisation, and lower costs from automation and fewer intermediaries.
What challenges does tokenisation face before widespread adoption?
The main hurdles are regulatory uncertainty across jurisdictions, integrating legacy systems with blockchain platforms, building market acceptance and trust, and scaling blockchain networks to handle high transaction volumes.
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