D2 Legal Technology's Simon Maharaj: Questions for Fund Managers as Tokenisation Momentum Builds

Why It Matters

Tokenisation reshapes asset management, forcing funds to modernize compliance and infrastructure to capture new liquidity sources. Early adopters gain competitive advantage in a rapidly digitising market.

Key Takeaways

• Tokenisation shifts assets onto blockchain platforms
• Regulatory clarity remains primary fund manager concern
• Liquidity benefits hinge on standardized protocols
• Custody solutions must integrate with legacy systems
• Investor education drives adoption speed

Pulse Analysis

The surge in tokenisation reflects a broader shift toward digitising real‑world assets, and D2 Legal Technology’s Simon Maharaj is at the forefront of that conversation. By converting securities, real estate, or private equity into blockchain‑based tokens, issuers promise near‑instant settlement, fractional ownership, and global reach. However, the technology’s migration from pilot projects to core balance‑sheet items brings legal complexities that traditional fund managers cannot ignore. Understanding jurisdictional nuances, anti‑money‑laundering obligations, and smart‑contract enforceability is now a prerequisite for any token‑driven strategy.

Fund managers face a triad of operational hurdles: regulatory compliance, custody integration, and liquidity management. Regulators worldwide are still drafting rules, leaving managers to interpret ambiguous guidance while safeguarding investor protection. Simultaneously, legacy custodial systems must evolve to securely store cryptographic keys and interact with distributed ledger protocols, a task that demands both technology upgrades and partnership with specialised providers. Liquidity, often touted as tokenisation’s hallmark benefit, depends on standardized token protocols and secondary market infrastructure; without them, tokens risk becoming illiquid digital paper.

Looking ahead, the firms that embed tokenisation into their DNA will reap the rewards of faster capital deployment and broader investor participation. Maharaj advises managers to pilot token offerings in low‑risk segments, establish clear governance frameworks, and invest in talent familiar with blockchain law. As the ecosystem matures, token‑based funds are poised to attract institutional capital, driving a new era of efficiency and transparency in asset management.