Tokenization, Digital Twins, Blockchain the Future of ETFs

BLOOMBERG LAW ·

Tokenization has been a Wall Street buzzword for some time, only now it’s becoming real. Beginning this summer, the Depository Trust & Clearing Corporation — a little-known utility at the center of the US financial system — will begin creating blockchain-based “digital twins” of stocks, bonds and exchange-traded funds. The goal isn’t to replace traditional investments, but to make them more portable, programmable and useful in ways that haven’t been possible before. On this episode of Trillions , Eric Balchunas and Joel Weber are ... Bloomberg Law provides trusted coverage of current events enhanced with legal analysis. Log in to keep reading or access research tools and resources.

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Asset tokenization, digital twins, and blockchain technology are emerging as the next key growth drivers for the ETF industry. This technological synergy is expected to maximize asset management efficiency and drastically reduce transaction costs. Investors should focus on the pace of digital transformation in financial markets and consider proactive interest in related infrastructure companies.

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