Tokenised Fund Structures Move from Pilots to Production

In our latest article published in the AIMA Journal, Aaron Mulcahy and Lorna Smith discuss how tokenisation has shifted from concept to live implementation across the funds industry, with managers issuing and servicing funds on DLT to accelerate settlement, expand distribution, and enable real-time transparency and automation. Our article highlights the increase in tokenisation in the funds space from money market funds and into tokenised ETFs, and sets out three areas of focus:

• the practical benefits and constraints of the current market such as automated workflows and faster liquidity on permissioned networks, tempered by fragmented infrastructure, thin liquidity outside controlled venues, and evolving interoperability and wallet portability;
• the regulatory and legal landscape across key jurisdictions, from Luxembourg’s blockchain laws, Ireland’s mapping of tokenisation models, Cayman and BVI VASP regimes, and Jersey’s issuer and AML requirements; and
• implementation considerations and emerging best practices for alternatives, including verified investor registers, programmable transfer rules, and resilient custody arrangements.