Digitisation in the asset management industry is picking up pace. Last month, BlackRock, the world’s largest asset manager, launched its first tokenised fund. Against this backdrop, Jersey Finance has partnered with IFI Global on a new report ‘The Evolution of Virtual Assets and Jersey’s Growing Role’.

The report provides valuable insights from investors, fund managers, virtual asset service providers, and fund directors, and features important contributions from the Government of Jersey, the Jersey Financial Services Commission (JFSC) and Digital Jersey. It includes an analysis of the Island’s regulatory framework and tokenisation capabilities, as well as a number of real-life case studies.

Highlighting that 5% – 10% of all assets are expected to be virtual by 2030 (Northern Trust and HSBC, 2023), the paper drills down into how the infrastructure needed to support tokenisation is developing. It identifies a diversity in asset classes looking at tokenised options for investors. As well as asset classes that are well-known early adopters, such as real estate, the research found that projects are being worked on in almost all investment areas, including sustainable investing.

Home to a growing number of virtual assets businesses

Digitalisation, or tokenisation, is likely to have a significant impact on the traditional finance world, most notably in terms of access to global markets and new asset classes. But it will be an evolution, not a revolution.

Elliot Refson, Head of Funds at Jersey Finance, commented: “Jersey is home to a growing number of credible virtual assets businesses, thanks to its world-class digital infrastructure, renowned regulatory framework and broad range of corporate vehicles – indeed, this year marks ten years since the world’s first Bitcoin fund was launched in Jersey.

“As this paper report outlines, however, the sector continues to evolve at pace and being prepared for a variety of future permutations is prudent. While jurisdictions will vary in their perspectives on risk, Jersey’s financial regulator has an established approach to consider applications involving token-generating events with meaningful substance backed by a credible promoter.”

Read this new report now for important industry insight: The Evolution of Virtual Assets and Jersey’s Growing Role