For many financial institutions in New Zealand, tokenisation is a largely untapped opportunity.
A Financial Markets Authority (“FMA”) sandbox has had some success and is expanding, and while we don’t yet have institutional tokenisation at scale, the regulatory groundwork is genuinely underway.
But if we look overseas, where regulation is becoming more defined, we can see tokenisation increasingly moving beyond pilots and into real-world financial infrastructure.
Where tokenisation is gaining traction
The most successful projects are often the least flashy, particularly in the early days of tokenisation maturity. They target friction points like settlement delays, fragmented data, manual compliance processes, and investor servicing inefficiencies.
Some of the strongest early use cases are emerging in areas where financial systems are slow, manual, or heavily intermediated.
That includes:
- Fund administration and investor servicing
- Cross-border payments
- Treasury and liquidity management
- Asset custody and transfers
- Settlement infrastructure
- Reporting and proof-of-reserve frameworks
A common thread runs through many of these examples: tokenisation is helping institutions consolidate fragmented processes into more unified, real-time systems.
In practice, that can mean fewer operational handoffs, faster settlement, improved transparency, and more automated compliance.
For investors and clients, it can also create a much more modern experience, particularly as expectations increasingly shift toward always-on digital services.
Case study: Tokenising hedge funds
One example comes from SkyBridge Capital, the global hedge fund founded by Anthony Scaramucci.
The firm moved US$300 million of its flagship hedge funds on-chain using infrastructure provided through Apex Digital 3.0.
The problem it was trying to solve is familiar across much of the funds management industry.
Traditional hedge fund operations can involve multiple layers of intermediaries, fragmented settlements, and manual administration processes. Subscriptions, redemptions, and transfers can take days to process, while operational costs remain high.
Tokenisation offered a way to streamline that environment.
By moving the funds on-chain, SkyBridge was able to enable real-time subscriptions, redemptions, and transfers operating 24/7, while also improving transparency and reducing operational complexity.
The infrastructure also incorporated compliance, custody, administration, and distribution capabilities into a more unified operating model.
Case study: Stablecoins and institutional payments
Another emerging area is tokenised payments infrastructure, particularly stablecoins operating within regulated frameworks.
One example is a European Electronic Money Institution (“EMI”) launching a Euro-backed stablecoin under the European Union’s Markets in Crypto-Assets (“MiCA”) regulatory regime.
The stablecoin is designed for institutional use cases including cross-border payments, treasury operations, and on-chain settlement.
Again, the underlying challenge was operational.
To meet MiCA requirements, the issuer needed to manage reserve assets, maintain daily reporting, ensure transparency around reserves, and build secure minting and custody infrastructure, all while operating within a tightly regulated environment.
The solution combined tokenisation infrastructure with reserve management, daily Net Asset Value (“NAV”) calculations and real-time proof-of-reserve reporting. The funds were tokenised on Avalanche using the ERC-3643 standard, via technology partner Tokeny.
Rather than removing compliance requirements, tokenisation became part of how those obligations were delivered more efficiently and transparently.
The result was a stablecoin framework designed specifically for institutional adoption, with regulatory oversight, operational resilience, and scalable infrastructure built into the model from the outset.
A pattern is emerging
These examples highlight an important shift in how tokenisation is evolving globally.
The early winners are not necessarily trying to rebuild the entire financial system overnight. Instead, they are using tokenisation to improve inefficiencies within existing systems.
In many cases, adoption is also occurring within permissioned environments, where access, governance, and compliance controls are clearly defined. That matters because it aligns far more closely with how banks, fund managers, and institutional investors already operate.
For New Zealand institutions, the opportunity is not simply to observe these developments from the sidelines. International case studies provide a growing library of practical examples that can help firms identify where tokenisation may eventually fit within their own operations, products, or customer experience strategies.
The compliance landscape here is still evolving, but the direction internationally is becoming increasingly clear.
Tracey has been actively engaged in the digital assets space since 2021, building on over 20 years of experience across Australian superannuation and New Zealand financial services. That combination gives her a grounded perspective on where tokenisation creates genuine value for institutions versus where it adds complexity. Based in Auckland, she is actively involved with the New Zealand digital assets community through FinTechNZ, Blockchain NZ and the broader adviser ecosystem.
