Answers
What are the benefits of tokenization in financial services?
The answer
In financial services, tokenization compresses the machinery of ownership: funds, treasuries, and credit issued as on-chain instruments settle in minutes instead of days, fractionalize without paperwork, trade around the clock, and serve as mobile collateral. The institutional record — tokenized money-market funds at scale — has moved the question from concept to allocation.
The benefits are operational before they are exotic: settlement risk collapses when delivery and payment are one atomic event; reconciliation disappears when the ledger is shared; and collateral pledged in minutes changes liquidity management for every treasurer. BlackRock's BUIDL and Franklin Templeton's on-chain funds made the case in the most conservative instrument class there is.
The build-out now moves down the capital structure — private credit, structured products, revenue shares — where tokenization's fractionalization and transferability create distribution that never existed. The firm's RWA tokenization practice advises issuers across that stack.