The future of funds, by HSBC & Northern Trust
There is undoubtedly momentum building across the #funds #tokenisation landscape. The maturing of what can be considered to be the supporting pillars of #marketinfrastructure, #interoperability and #standards covered in this report will be instrumental to the reaching of “minimum mass” in institutional adoption. This will enable the ecosystem to graduate from a largely exploratory #innovation stage to one where #commercial models are viable and participation can accrue the benefits it has the potential to deliver.
Investor preferences and expectations continue to evolve as fast, if not faster, than the technological advances. The hunt for alpha and beta returns in an ever more complex macro environment mean that many things are not certain
or constant. This further reinforces the need to embrace the innovation and state of perpetual change that we are now immersed in, with a toolkit that is deeper and wider to bring generational change to the broader funds landscape.
Whilst there are steps being taken toward that ‘Future of Funds’ space, there is no escaping the practical realities and headwinds to making progress while navigating the capital #investment required, #regulatory uncertainty, #crossborder barriers, backward compatibility and maintaining current operating models in co-existence. Once again, this is not a space that will see success in isolation. Collaboration will remain key.
