Tokenised Funds (PwC, 2026) — One‑Page Summary

Tokenised funds are emerging as one of the most dynamic segments in digital assets, driven by the convergence of blockchain infrastructure, regulatory progress and institutional adoption. The market has expanded rapidly, with tokenised real-world assets growing more than fourfold since early 2025 to exceed USD 30 billion. Within this growth, tokenised funds—especially US Treasury‑based money market funds—have become the dominant use case, accounting for nearly half of the market. [pwc-tokeni...funds-2026 | PDF]

This momentum reflects a clear shift in investor behaviour: institutional capital is increasingly moving on-chain in search of yield-generating instruments rather than passive holdings such as stablecoins. Tokenised funds offer immediate utility because they combine familiar regulated structures with blockchain-based efficiency. As a result, they are becoming the primary gateway for traditional finance to enter digital asset ecosystems, with assets under management expected to scale significantly in coming years.

Adoption has already moved beyond experimentation into production. Major global players such as Franklin Templeton, BlackRock and UBS have launched live products, largely focused on money market strategies and liquidity management. These products demonstrate tangible advantages: 24/7 transferability, near-instant settlement, and the ability to integrate fund shares into broader digital workflows such as collateral management. At the same time, they confirm that tokenisation today primarily affects the ownership and distribution layer of funds rather than the underlying investment process.

The value proposition is therefore operational and structural rather than investment-driven. Tokenised shares replace fragmented record-keeping with a single on-chain register, reducing reconciliation efforts and improving transparency. Smart contracts automate key processes such as subscription, redemption and compliance checks, while enabling programmable features like transfer restrictions or investor eligibility rules. The benefits are already visible in high-friction parts of the value chain—distribution, investor onboarding, and income distribution—where manual processes are reduced and settlement times shortened. Over time, as adoption scales, these incremental efficiencies are expected to become structurally meaningful across the industry.

Another important shift lies in distribution. Tokenisation enables more direct access to funds via digital platforms, reducing reliance on traditional intermediaries and opening the door to new forms of investor engagement. While secondary trading of fund units remains limited today, the infrastructure is evolving toward continuous trading and real-time liquidity, particularly for products used in treasury and collateral contexts. At the same time, most implementations remain permissioned, reflecting regulatory requirements and the need for controlled market access.

From a technology perspective, the market is converging toward a hybrid model: public blockchains such as Ethereum are used as the underlying infrastructure, combined with permissioned smart contracts to ensure compliance and control. This approach balances interoperability and scalability with regulatory expectations. However, a key constraint remains the “cash leg” of transactions—fully efficient on-chain settlement will depend on the broader adoption of digital cash instruments such as stablecoins, tokenised deposits or central bank digital currencies.

Against this global backdrop, Switzerland stands out for its regulatory clarity and legal innovation. The country established a comprehensive framework with its 2021 DLT Act, enabling the creation of ledger-based securities within existing financial market law. Critically, Swiss regulation allows fund units to be tokenised directly under the Collective Investment Schemes Act, without requiring new legal structures. This provides a high degree of continuity: tokenised units are legally identical to traditional fund units, with the same investor rights, but recorded on a blockchain-based register.

This legal setup creates a strong strategic advantage. Switzerland allows the DLT register to function as the official share register, enabling near real-time issuance, transfers and redemptions while maintaining full regulatory compliance. The framework also clearly addresses investor protection, AML/KYC requirements and operational governance, making it one of the most robust environments globally for tokenised funds.

Yet despite this favourable positioning, the Swiss market has not seen a live tokenised fund launch to date. This reflects a broader industry reality: adoption depends not only on regulation, but on ecosystem readiness. Market infrastructure, digital custody, payment rails and investor demand must align before tokenised funds can scale meaningfully. In this sense, Switzerland is ahead on legal foundations but still waiting for commercial momentum and first movers to activate the market.

Overall, tokenised funds are best understood as a gradual but structural evolution of fund infrastructure. They do not replace existing fund models, but reconfigure the ownership and servicing layer to be more efficient, transparent and digitally integrated. Globally, momentum is building rapidly around institutional use cases, particularly in liquidity products. For Switzerland, the opportunity is clear: with one of the strongest regulatory frameworks in place, it is well positioned to become a leading hub—provided that market participants move from readiness to execution.

This article is for general information only and is not financial, investment, or tax advice. For guidance specific to your situation, get in touch.