The Tokenisation of Alternative Assets

Together with Liquefy and BNP Paribas Asset Management, CAIA Association has published a research paper to help educate our community about the potential opportunities and challenges related to the tokenisation of alternative assets.

Image of Best Real Assets and Alternatives Paper 2021

We're pleased to provide some key highlights from the paper, along with some additional learning resources curated by our global content team.

Tokenisation of Alternative Investments

Key Takeaways:

  • Tokenisation approaches have vast potential for addressing the challenges related to investment in illiquid asset classes, with advantages including:
    • improved liquidity
    • faster, cheaper transactions
    • greater transparency
    • broadened access to more investors

While increased liquidity should be generally beneficial, the industry and its regulators must continue to ensure that investors are equipped to understand the quality and risks inherent in each tokenised investment.

  • Tokenisation could increase access to Alternative Investments for a wider group of investors. It also presents an opportunity to unlock retail assets as an important source of capital to meet financing gaps of meaningful projects (such as infrastructure) in private markets.

For more on our partnership and approach, please read our press release.