BNY sees 'FOMO' driving asset managers into tokenized funds
BNY says fear of missing out is pushing fund issuers to explore blockchain-based ETFs and tokenized finance products.
BNY has identified "FOMO" as a key factor driving asset managers toward tokenized funds, per a CoinDesk report published June 23. Fund issuers are increasingly exploring blockchain-based ETFs out of concern they will lose an early foothold in tokenized finance.
The move reflects a broader shift in institutional behavior, where competitive pressure — rather than immediate client demand or proven returns — is accelerating adoption timelines. Asset managers appear unwilling to cede ground in what many view as an emerging structural change to fund infrastructure.
Tokenized funds use blockchain rails to represent ownership of traditional assets such as equities, bonds, or money market instruments. Proponents argue the format can reduce settlement times and expand access; critics note regulatory frameworks remain incomplete in most jurisdictions.
How quickly regulatory clarity emerges will likely determine whether the current wave of exploration translates into live product launches at scale.
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