Tokenisation and the Evolving Role of Custodians

Tokenisation is reshaping how assets are issued, held, and transferred, and as the ecosystem develops, custody is taking centre stage. No longer limited to asset safekeeping, custody increasingly forms part of the core infrastructure that allows institutions to engage with tokenised markets in a controlled, scalable, and secure way.

From Holding Assets to Facilitating Activity

Digital ownership and control mechanisms underpin tokenised assets, introducing new models for issuance, transfer, and ongoing management. Within this environment, custody provides the control frameworks and operational clarity required to support asset activity while maintaining defined governance parameters.

As tokenised instruments become more sophisticated, custody extends well beyond the traditional notions of safekeeping. It supports transfers, governance processes, and lifecycle events that are integral to how tokenised assets function in practice. This marks a broader shift in the role of custody, from a predominantly post-trade function to an ongoing operational capability embedded across the asset lifecycle.

Supporting Institutional Participation

Tokenised markets are increasingly bringing together crypto native firms and traditional financial institutions. For institutional participants, engagement is shaped by established governance standards, regulatory obligations, and expectations around accountability and operational resilience.

Specialist custodians support institutional requirements by providing independent oversight and resilient operating models, allowing institutions to engage with tokenised assets without compromising on governance standards and security requirements. As participation increases, custody plays a critical role in bridging emerging technology with familiar institutional operating expectations.

Operational and Governance Considerations

The way tokenised assets are structured has direct implications for how they are managed. Early token standards prioritised simplicity and broad interoperability, supporting simpler transfer functionality across networks. As tokenisation extends into regulated asset classes, additional capabilities such as permissioning and transfer controls become increasingly important.

These features help align tokenised assets with regulatory and operational requirements across their lifecycle, shaping how assets are distributed, transferred, and governed. At the same time, successful adoption depends on operational fit. Institutions require solutions that integrate effectively with existing processes for reporting, governance, and risk management.

Rather than attempting to replicate traditional workflows on-chain, effective implementation balances innovation with operational familiarity and interoperability. This alignment is critical to ensuring tokenised assets can be incorporated into institutional environments without introducing unnecessary complexity or risk.

Enabling confidence in tokenised markets

As tokenised markets continue to develop, confidence remains a defining factor for adoption. Secure control, alignment with regulatory expectations, operational integration, and connectivity across systems all contribute to that confidence.

Custody sits at the heart of these requirements. By supporting secure asset control and enabling participation within established governance frameworks, custodians allow institutions to engage with tokenised markets securely and with confidence. As the range of tokenised assets expands, the role of custody continues to evolve – not as a standalone function, but a core component of the infrastructure of tokenised markets.