The tokenization of alternative assets and investment funds represents a significant innovation in modern finance. By combining the transparency, programmability and efficiency of Distributed Ledger Technology (DLT) with alternative asset classes, tokenization looks to stand at the forefront of redefining how capital is accessed, invested and managed. This AIMA report, co-authored by KPMG and a working group of AIMA members, provides a timely, in-depth exploration of the opportunities, challenges and regulatory developments shaping this transformation.

In recent years, tokenization has moved from concept to practical implementation, driven by advances in DLT, increasing market demand for broadened investor access and the search for operational efficiency. Yet, as this report shows, innovation in financial markets must walk together with sound governance, robust legal frameworks and investor trust.

This report features technical insights and strategic perspectives on how tokenization presents a promising frontier in financial innovation, with the potential to significantly enhance liquidity, broaden accessibility and streamline operational processes. The insights from industry experts and real-world applications make this report a useful resource for asset managers and institutional investors navigating this new era of financial innovation.