As an advisor to the native companies Tradfi and Crypto, a trend that fascinates me is the potential of blockchain and tokenization to help asset managers to serve the next generation of investors.
These financial institutions are proud to sail in complexity and to pursue innovative strategies. They manage thousands of billions through investment capital, credit, business and real assets. But despite all their sophistication in the construction of the portfolio, many still rely on infrastructure better suited to the era of fax.
Investor files are kept in the spreadsheets. Capital calls come out by e-mail. Cascade calculations are carried out manually. LPs obtain quarterly PDFs and few others. The technological battery under these companies is fragile, opaque and late for a serious upgrade.
Blockchain is not a speculative detour; It is a modern financial operating system. And for asset managers, it offers not only the opportunity to modernize administration and fund operations, but also to unlock new borders in product offers to better serve their existing and future customers.
Modernization fund infrastructure
The average investment company is always based on a tangle of administrators, guards and transfer agents, each working from their own systems and reconciling hand records at each stage of the life cycle of a fund: creation, configuration, collection of funds and integration, operations, exchange and liquidity and closing. Because a large part of this process is manual and tailor -made, errors occur, delays are common and transparency is low, while the cost of compliance and administration continues to increase.
Blockchain and tokenization resolves these ineffectiveness by standardizing the workflows on several participants. A large authorized book, shared between the GPS, the LPS, the administrators of funds, the transfer agents, the listeners, and more, can become the only source of truth for the accounts of investors, capital flows and the history of transactions. Instead of fragmented systems, partitioned information and weekly reconciliations, everyone operates from the same data, updates and visible in real time.
Intelligent contracts can automate capital calls, distributions and even complex cascade logic, ensuring that correct payments go to correct, instantly and transparent counterparts. And the tokenization and interoperability of different types of assets can allow automated and instantaneous regulations. No PDF, wire delays and human error.
They are not gadgets – they are operational upgrades. Investors can hold digital fund shares, pay for buyouts in the floors and follow the accumulation of performance in real time. For species management, it changes the situation. For operational teams, this means fewer strangles and cleaner audit trails.
Blockchain and tokenization are not only a question of liquidity, but an opportunity to replace a patchwork of clumsy systems with a rationalized and programmable base for fund operations.
The next generation of investment vehicles
If the blockchain already modernizes fund infrastructure, the next border is even more exciting: using technology to create products that could not exist before.
Start with a tokenized private credit. You just have to look at the Tokenized Private Credit Fund for Apollo, which has moved more than $ 100 million in chain and simultaneously exists on several blockchains, which makes it interoperable with digital guard systems. Or, the Benji platform of Franklin Templeton, where the money market funds in Tokenized live in many block channels, allowing its investors to transfer peer-to-peer actions with stablescoins, carry out an intraday return to the second and access the liquidity of money to Tokenized. Meanwhile, the BlackRock Institutional Institutional Institutional Market Fund has already exceeded $ 2.5 billion AUM a year after its launch.
These products offer more than operational improvements; They allow a fractional property, secondary liquidity and a radically more accessible wrapper for investors who wish to exhibit these products without the commitment of a traditional LP structure.
The most prospective companies go even further: fully build new types of chain products. Take chain yield boxes, a relatively new primitive in crypto, which looks like a self-executed investment strategy.
Companies like Veda Labs are pioneering intelligent contracts that accumulate tokenized assets, sell covered calls, lend to protocols or arbitration rates through DEFI, allowing institutions such as asset managers to offer marked investment strategies in white that automate execution while integrating the compliance and logic of costs directly into the protocol. No calculation sheets or intermediaries, just composable and verifiable investment products designed for native digital beneficiaries. Instead of relying on opaque nav calculations, yields can be checked on the chain.
In simple terms: this is a new category of investment products. More transparent than an ETF, more automated than a hedge fund, and infinitely more programmable than any inherited packaging.
Construction time is now
Asset managers do not need to abandon what they are good. But they need to modernize how and what they deliver.
Blockchain is not a threat to private markets; The private upgrading markets were waiting. A way to clean back office complexity, reduce operational risks and serve customers with faster, smarter and more productive products.
The tools are ready. The infrastructure is live. And the first movers have already shown what is possible. Asset managers who ignore this innovation may be left behind – because if others still send capital calls by e -mail, the next generation of investment platforms is already under construction: in chain, in real time and on a large scale.
