Ireland’s funds industry has urged policymakers and asset managers to accelerate the mainstream adoption of tokenisation, arguing that the technology is now proven and ready to reshape capital markets.
In its December 2025 paper, Irish Funds concludes that tokenisation should move beyond pilot projects to become embedded in regulated fund structures, positioning Ireland as a hub for innovation.
The report’s call‑to‑action stresses that tokenisation is not simply an experiment but a strategic infrastructure shift. It highlights the need for industry‑wide collaboration and regulatory clarity, with UCITS and AIFMD frameworks seen as capable of accommodating tokenised funds while safeguarding investor protection.
Evidence within the paper shows that tokenisation is already being tested at scale. BlackRock and Fidelity International have piloted Irish‑domiciled money market funds as collateral on JPMorgan’s Kinexys platform, demonstrating that tokenised instruments can be deployed in live market settings.
The report also points to operational readiness, identifying two pathways for adoption: digital twin registers that mirror existing fund registers on blockchain, and native on‑chain transfer agent systems where the ledger itself becomes the register.
Liquidity benefits are a recurring theme within the report, too. Tokenised money market funds enable real‑time cash management and collateral mobility, while private asset funds gain tradability in markets that have traditionally been illiquid, it says.
The paper argues that tokenised collateral could reduce stress in derivatives and repo markets during crises by making collateral more mobile and transparent. It also highlights the potential for Web3‑native distribution channels, which could broaden investor access and bring regulated funds into digital ecosystems.
The conclusion frames tokenisation as a competitive necessity, stating that if Europe wants to remain at the forefront of global capital markets, it must embrace distributed ledger technology not as an experiment but as infrastructure.
Ireland is positioned as a natural testbed, given its established role in global fund domiciliation and its track record in ETFs and private asset strategies, according to the report.
The full paper can be found on the Irish Funds website.
