Ashley Sheen, asset management specialist, explores the gap between ambition and execution in the shift towards digital assets. In conversation with Lynn Strongin Dodds of Funds Europe, Ashley highlights a striking disconnect: while asset managers frequently discuss embracing digital assets, many back-office teams are already deep into preparations to make this transition operationally viable.
The discussion emphasises that moving into digital assets isn’t just a front-office decision—it requires robust infrastructure, regulatory clarity, and risk management frameworks. Custodians and service providers have been investing heavily in technology and compliance to support tokenised securities and crypto custody, anticipating client demand that has yet to fully materialise. This proactive stance reflects a recognition that digital assets could redefine settlement processes, reporting standards, and investor expectations.
Yet, asset managers often remain cautious, citing concerns around volatility, regulation, and reputational risk. This hesitancy contrasts with the urgency felt by operational teams, who see readiness as a competitive advantage. The result is a lag: while strategic conversations continue, the plumbing of the financial system is being rewired behind the scenes.
The dialogue also touches on collaboration. For digital assets to scale, custodians, asset managers, and regulators must align on standards and interoperability. Without this, fragmentation could hinder adoption and increase operational complexity.
Ultimately, Ashley suggests that the question is not if digital assets will become mainstream, but when. Those preparing now—both in technology and governance—are positioning themselves to lead when the tipping point arrives.
Read the full story here.