Fund Tokenization – Acceleration Towards On-Chain Natives

04 Jul 2025

Head of Drew’s Financial Services Regulation practice Director Grace Chong and Senior Associate Theodore Tay have co-authored a report on fund tokenization in collaboration with Equitize and Solana Foundation. ‘Fund Tokenization – Acceleration Towards On-Chain Natives’ explores how tokenized funds are rapidly emerging as a leading use case in the asset tokenization landscape, offering a blockchain-based solution to longstanding inefficiencies in traditional fund management. The Guide was officially launched on 30 June at a panel event launch at Drew & Napier.
 
As of April 2025, tokenised real-world assets have surpassed US$6 billion in issuance, with projections indicating growth to US$2 trillion by 2030. This trend reflects growing institutional engagement and legal clarity across multiple jurisdictions. Tokenisation enables faster settlement, lower operational costs, and embedded compliance while supporting 24/7 liquidity and broader investor access. The evolution is particularly relevant for regulated products such as money market funds and ETFs, which are already benefiting from existing regulatory frameworks. The shift toward on-chain fund models is accelerating, with digital native and tokenised feeder structures offering practical paths to adoption for traditional asset managers.
 
This collaboration, and report, is timely and relevant to asset managers, fund service providers, and regulators. It demonstrates how institutional-grade tokenisation, underpinned by public blockchain infrastructure and clear regulatory frameworks, is rapidly reshaping classical capital markets into compliant, resilient, on-chain ecosystems.
 
You may read the full report here.