Business News | Tokenisation Could Threaten 25-30% of Wealth Management Revenue: Morgan Stanley

A recent Morgan Stanley report highlights that the rapid adoption of tokenized real-world assets could disrupt the wealth management sector by threatening 25-30% of their total revenue derived from net interest income. The analysis projects that the tokenized asset market will expand from approximately USD 40 billion today to USD 2.3 trillion by 2030. This growth is expected to be fueled by the increased mobility of collateral, the rise of tokenized money market funds, and improved access to global securities. While tokenization offers firms new opportunities to distribute investment products and enable lending against a wider array of digital assets, it simultaneously creates competitive risks. Wealth managers who fail to adapt to these digital infrastructures risk losing client data and assets to emerging platforms. The report notes that while tokenized money market funds allow institutions to maintain interest-bearing holdings on-chain, the technology is not a panacea for liquidity or pricing issues in private markets. Ultimately, firms must invest selectively in new capabilities to navigate this shifting financial landscape. This transition marks a significant evolution in how traditional financial assets are held, transferred, and utilized as collateral.