
Tokenisation gives retail investors tickets to the dance

While investor appetite for tokenised assets has been surging for some time, new research suggests that most institutional investors now favour it to access pre-IPO opportunities. Given that it breaks down real-world assets into smaller, more affordable units, tokenisation - by leveraging blockchain technology - gives retail investors tickets to a dance previously reserved for institutional players or high-net-worth individuals due to high capital requirements. For example, instead of requiring a single buyer to invest $10 million, the [asset] owner might issue 100,000 digital tokens, each representing $100 of the property.Asset diversityAs well as satisfying growing demand for greater liquidity, lower costs, greater transparency and shorter settlement times, tokenised assets – aka fractional ownership – also allow retail investors to more easily diversify into asset classes previously off limits. Virtually any valuable asset can be tokenised, and new research suggests that around 70% of institutional investors have expressed strong or moderate interest in taking it one step further: by using this new digital channel to gain access to pre-IPO opportunities. By levelling the investor playing field, tokenisation means mu
