New York Life Investment Management says blockchain can help scale tailored portfolios by streamlining back-office work, and Thomas Sy says the next phase of tokenization will center on personalized portfolio construction and on-chain yield demand.
Tokenization could evolve beyond faster settlement and extended trading hours into a tool for building personalized investment portfolios at scale, according to New York Life Investment Management. Thomas Sy, head of multi-asset solutions, said blockchain can simplify transfer agency, settlement and other back-office processes that have historically made customized portfolios more operationally difficult and expensive. He said tokenization’s next phase will be personalized portfolio construction, as institutional demand for on-chain yield assets rises alongside the growth of stablecoins, which he said now exceed $300 billion. NYLIM manages about $807 billion, with Sy’s team overseeing about $11 billion, and the firm has partnered with Centrifuge to bring a high-yield corporate bond strategy on-chain as an example of how tokenized infrastructure may broaden access to individualized investment offerings.