26 February 2026 | Insight
Once confined to the realm of cryptocurrency, tokenisation is now emerging as a transformative force in mainstream financial services and private equity is no exception.
While the concept is not new, its application to fund structures is beginning to gain serious traction. But what does tokenisation really mean for fund managers? And more importantly, how should you prepare?
Tokenisation refers to the conversion of a real-world asset into a digital token that is recorded and transferred on a blockchain. In fund management, this typically means representing ownership stakes, fund units, or participation rights in a digital format.
In simple terms: instead of issuing paper certificates or recording ownership in traditional registries, investors hold digital tokens that represent their stake in the fund.
Several forces are converging to drive interest in fund tokenisation:
From fractionalised ownership of real assets to near-instant investor onboarding, the promise of tokenisation is speed, access, and control.
Expanded distribution channels
Tokenised funds can be offered through digital platforms, potentially attracting new investor classes and streamlining onboarding across borders.
Increased liquidity
With appropriate infrastructure and permissions, tokenised fund interests could be traded on secondary markets, offering liquidity options that traditional structures lack.
Operational streamlining
Smart contracts can automate investor communications, capital calls, distributions, and KYC processes, reducing admin burden and cost.
Regulatory innovation
Jurisdictions like Singapore, Switzerland, and the UAE are creating frameworks that support tokenised asset structures. Early movers could benefit from regulatory arbitrage and innovation incentives.
While the upside is compelling, tokenisation also introduces new risks and unknowns:
As digital transformation accelerates in private markets, risk transfer solutions must evolve in parallel. Tokenised fund structures introduce blended exposures that touch on:
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Brokers and fund managers must work together to rethink how policies are structured, especially when tokenised assets fall between traditional coverage lines.
Tokenisation of funds isn’t a hypothetical future, it’s already here. For fund managers, it represents both an innovation opportunity and a governance challenge. Those who understand the nuances of this evolution, including the risks, will be better placed to lead in a more digitised, decentralised investment landscape. At Price Forbes, we’re already advising clients on how to insure and structure tokenised products responsibly. If you’re exploring tokenisation, or simply want to understand its implications, we’re here to help.
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