Articles

Primary contacts
Cayman Islands

Kristy-Anne Leith

Partner
Hong Kong

Peter Alphart

Senior Associate
9 September 2026

Why tokenised funds are reshaping asset management

Kristy-Anne Leith and Peter Alphart examine why tokenisation is gaining significant institutional momentum and explore the Cayman Islands’ position at the forefront of this shift, including its bespoke 2026 legislative framework for tokenised funds.

Tokenised funds represent a structural evolution in asset management, one in which fund interests become programmable, portable, and capable of settling in seconds rather than days.

The article addresses the challenges facing tokenised funds, how each has been, or is being overcome, and what lies ahead:

  • Service provider readiness
  • Compliance with FATCA, CRS and AML standards
  • Secondary market liquidity
  • Cost of setup and operation
  • On-chain privacy
  • Cybersecurity risks and controls
  • Insurance and liability risk
  • Operational efficiency gains, programmable compliance and composability
  • Convergence of AI with tokenised fund infrastructure

Read the full article here.