Asset tokenizationTowards the unified secondaryhilmarket: The evolution ofdistribution channels andevaluation of Asset TokenizationBenefitsSeptember2023金喜PreparedforEY parthenonExtemal
Relevance ofassettokenization,Tokenization has the potential to bring tillions in value to blockchains ($28.7tr byFY30F). This is already transforming the way assets are managed and tradedAssettokenizationmarketAssettokenizationmarketforecast(FY23B-FY30F), in $tAsse tokenization-supply and demandEquityRealesahePivuaeequlyOherDemand-investing intokenized assets28.7Investors believe in the long-temm value oftokenized assets andplan toinvest in tokenized assets this year or the next."BasedonaEY-Parthenonsurvey,57%prcentoftheinstitutinalinvestorsindicatedaninterestininvestingintokenizedassets,8.6particularlytokenized private funds equitis,fived-income, andpubicfunds."Suppy-tokenizationoffexisting)assets4.210.142ing firms in the industry are reassessing their growth and04:0632品03:0.5020412.1lea. fromKKR,. Hamilton Lane and FrankinTempleton),2.02.3perimented with Blockchain-based tokenization and are3.702-0.37.71-0.25.90.12.94.3aEY-Parthenonsurvey,47%ofhedgefundsand05030.31institutional asset managers are interested in tokenizing theirownFY23BFY24FFY25FFY26FFY27FFY29FFY30FEy parthenonSource:EY-ParthenananalysisPage2
Relevanceof asset tokenizationAsset tokenization is the process of converting ownership rights of an asset into a digitaltoken stored on a blockchain, which enhances a o. accessibility and efficiency,Assettokenizationataglance,Securities and real-world assets (RWA)Asset tokenizationTokenized assetsEquities, fixed-income, public/ private funds, realTokenization converts theownershiprights of anEnhance accessibiliy, transparency, efficiency andestate, commodities and other assets custodied byliquidity of traditional assets. These benefits arefinancial institutions.company-into a digital token that is stored on alimaximized when trading across decentralizedblockchain.finance(DeFi).文Page3Ey parthenonSource:EY-Parthenan analysis
RelevanceofassettokenizationLowertransactions costs. increased liauiditv are the main driversfor investors toswitchto tokenization. However, uncertainty in regulatory environment holds them back.@ Demand-investing in tokenized assetsInvestor motivations t tokenize assetstInstutonal investorsHNWI!58%56%50%51%53%46%46%40%29%31%23%21%17%19%15%20%10%crensed iquidityt(T+0)Uncertain regulatoryenvironmentUp-front investment required to hold tokenized assetso·O:Unproven technologyLack of established liquidity/ secondary market liquidityLack of established marketplaces/ATSLack of privacy associated with blockchain1.Rankorderdetrminedby%dfrespondents that ranked eachchoie 1,20r3Page4Ey parthenonSource:EY-Pathenon Tokenization Survey (HNWIn-=234; InstitutonalInvestosn=78
Relevance ofassettokenization,. nstitutions are most interested to tokenize funds and securities as they seeopportunities to access new capital, increase liquidity and enhance operational efficiencyQ Supply-tokenization of (existing) assetsAssetclasses...
