Tokenisation in Capital Markets: Is It the Next Frontier After AI?

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.

View of a Trading Floor

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.