The shift from crypto to tokenised markets: Why custody now matters more than ever

The evolution of digital assets is moving beyond early crypto experimentation and into a broader transformation of traditional market infrastructure. In a recent conversation at FundForum 2026, José Cosio, MD and Head of Intermediary, Global ex US, Neuberger, outlined how tokenisation is reshaping settlement, liquidity, and operational processes, and why regulated custody now sits at the centre of institutional adoption.

Exploring the tokenisation landscape

Institutions first approached digital assets through decentralised cryptocurrencies such as Bitcoin and Ethereum, where private keys enable asset movement on chain. As interest expanded, firms began exploring tokenisation of real‑world assets including bonds and equities. Cosio noted that while tokenisation discussions began as early as 2018, the industry only recently gained clarity on its practical benefits. Instant on‑chain settlement replaces traditional T+1 processes, creating operational efficiencies, reducing administrative burdens, and improving collateral mobility and liquidity.

Emerging technologies and infrastructural shifts

The same infrastructure that supported early crypto markets is now being applied to tokenised traditional assets. This introduces new technical responsibilities for institutions, particularly around private key management. Cosio explained that private keys function as long, complex passwords, and whoever controls them can move assets. Most asset managers lack the technical capabilities and governance frameworks to manage keys internally, making secure storage and regulated oversight essential. Custodians provide the regulatory structure and safekeeping controls familiar to institutions.

Regulatory influence and future focus

Cosio emphasised that the transition to tokenised markets will be gradual. Several elements, including legal definitions around collateral, are still developing. He encouraged CIOs and portfolio managers to use this period to ask questions, engage early, and work with experienced partners. While the industry is fast‑moving, the broader rewrite of market infrastructure will take time, creating space for institutions to build understanding before adoption accelerates.

Looking ahead: building readiness for tokenised markets

Cosio closed by emphasising that while tokenisation is advancing quickly, the broader transition will unfold over time. Key legal and operational elements are still being defined, giving institutions space to learn and prepare. He encouraged CIOs and portfolio managers to engage early with experienced partners, ask foundational questions, and build familiarity with the processes behind tokenised assets. This period of gradual change offers an opportunity for firms to strengthen their understanding before adoption accelerates and digital market infrastructure becomes standard.