In the Press
1 November 2022

Private Markets: Is Tokenisation a Good Idea? (Investment & Pensions Europe)

Professionals
The tokenisation of real and alternative assets has the potential to democratise investment opportunities in large assets such as real estate, infrastructure projects, renewable energy schemes and private equity funds – which are mainly illiquid and cannot be traded electronically on secondary markets. There are ‘native’ tokens which are a digital representation of themselves, such as Bitcoin, and ‘non-native’ tokens that link to, or represent an asset outside or not native to the blockchain. Andrew Henderson, Private Investment Funds and Financial Industry partner, told Investment & Pensions Europe: “A token records ownership and validates authenticity of itself or the asset outside the blockchain. What you actually get with the token will depend on its contractual terms.