PBW: Tokenisation drives private market shift
Digital infrastructure is reshaping access to private markets as institutions look beyond traditional public allocations and towards solutions that unlock liquidity.
During an exclusive PBW side event hosted by Apex, William Gow, director, private funds, LSEG at London Stock Exchange Group, highlighted the importance of private securities as companies remain private for longer, increasing demand for scalable market infrastructure.
Private markets are becoming a more central component of capital allocation, as the traditional IPO pathway becomes less dominant, according to the panel.
Graham Rodford, CEO of Archax, pointed to structural inefficiencies in traditional finance, including illiquidity and high minimum investment thresholds, as key barriers to private market participation.
“Traditional private markets remain constrained by illiquidity and high minimums,” he said, positioning tokenisation as the route to more accessible and efficient market infrastructure.
Tokenisation was identified as a key enabler of this shift, supporting fractionalisation, improved liquidity, and more efficient distribution of private assets.
Finishing the panel, Gow suggested portfolio construction could shift towards a 60/40 split between public and private assets within five years, reflecting the increasing institutionalisation of private markets.