January 2025
Blockchain in asset management market discover trends, growth drivers, and how blockchain is reshaping global asset management. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The Blockchain in Asset Management Market enhances transparency, security, and efficiency in managing financial assets using blockchain technology. The increased need for improved security, transparency, and efficiency in industrial digital assets, driving the global blockchain in asset management market.
Artificial Intelligence and blockchain technology are transforming the financial services industry. Businesses are leveraging AI in existing asset management solutions to enhance risk management and reduce costs by enhancing creditworthiness assessments and fraud detection. AI is impacting blockchain technology in asset management by providing improved transparency and trust. AI is helping to improve security, efficiency, and smart contract optimization. The predictive analytics of AI algorithms helps to predict trends, potential risk, and optimize asset management strategies, to build reliability and cost-saving advantages. AI is playing a crucial role in blockchain-based asset management solutions, leading to more innovations and efficiency.
The blockchain in the asset management market refers to the way people in investing, trade, and manage their digital assets. Around 64% of industries are using digital assets managed by enterprises. The blockchain in asset management is a rapidly growing industry where blockchain technology is being leveraged to manage digital assets' security, transparency, trust, and efficiency. Industries like finance & banking, supply chain management, real estate, and healthcare are the major adopters of blockchain-based asset management systems. These industries are playing a vital role in enhancing transparency, trust, efficiency, cost reduction, security & fraud protection, and accessibility and financial inclusion in their digital asset management.
Industries are looking for real-time settlement solutions to improve interaction with users, driving a surge for blockchain-based asset management solutions. The smart contracts to automate compliance processes are gaining significant popularity around the globe, driven by the need to comply and meet with regulatory standards. Distributed Ledger, Immutable Nature, Cryptography, Smart Contracts, and Tokenization are key opportunities for blockchain-based asset management solutions. Major key players, including IBM, Microsoft, SAP SE, and Oracle, are providing significant solutions in areas of finance, supply chain, procurement, healthcare, and other industries.
2025 Federal Developments on Blockchain in Asset Management
Report Coverage | Details |
Dominating Region | North America |
Fastest Growing Region | Asia Pacific |
Base Year | 2024 |
Forecast Period | 2025 to 2034 |
Segments Covered | Component, Application, Deployment Type, End User, and Region |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Decentralization of Networks
The rising adoption of decentralized blockchain networks is driving the blockchain in the asset management market, driven by enabling a secure way to manage assets, enhance transparency, efficiency, and gain control over all digital assets. Decentralized blockchain technology helps to reduce the requirement of intermediaries and central authorities by providing transparent and secure asset management. This technology enables asset tokenization, decentralized finance, and real-time tracking and verification of assets in supply chain management. Industries are adopting decentralized blockchain networks to improve their process scalability, accessibility, and reduce counterparty risks.
High Implementation Cost of Blockchain Technology
Blockchain technology in asset management requires high investment in development, specialized expertise, and potentially licensing. The high implementation cost hampers its entry into smaller organizations or startups. The implementation of blockchain technology needs investments in infrastructure, skills, and training, causing challenges for organizations with limited resources and budgets. However, the ongoing innovation and development of cloud-based blockchain technology can help to reduce the upfront cost of implementation.
The changing regulatory landscape
The changing regulatory framework associated with blockchain technology for risk of cryptocurrencies is causing challenges of uncertainty, compliance, and limiting the adoption of blockchain in asset management. Business is limiting their investments and innovations in blockchain-based asset management solutions, due to the frequently changing regulatory landscapes. Additionally, various regulatory frameworks approach jurisdiction, creating a complex environment for asset managers' operations globally.
The Adoption of Distributed Ledger Technology (DLT) Solutions and Fund Tokenization
Businesses are focusing on the adoption of distributed ledger technology and fund tokenization to enable their real-time settlements, reduce transaction costs, and improve transparency and efficiency in the asset management process. The transparent and tamper-proof record of transactions is being enabled due to the advanced component of blockchain technology in asset management, including distributed ledger technology. Additionally, fund tokenization enables traditional assets on blockchain, helps to improve liquidity, and fractional ownership. the digital assets, Art & collectibles, and real estate are the major applications of this technology. The rising surge toward modernization, including updated legacy systems, operations, and settlement distribution, is fostering adoption of the Distributed Ledger Technology (DLT) Solutions and Fund Tokenization.
In 2024, the platform segment dominated the market, driven by the increased need for customized, scalable, and cost-effective solutions. The platform provides foundational infrastructure to develop and run blockchain applications. The platforms enable to creation of decentralized applications (dApps), smart contracts, and blockchain networks, crucial components of blockchain-based asset management solutions. Platforms including asset tokenization, blockchain asset tracking & monitoring, and smart contract functionality are gaining popularity in the global market.
The services segment is expected to grow at a significant growth in the forecast period due to the increased adoption of blockchain in asset management for more transparency, trust, efficiency, scalability, and security. Services, including custody, back-office operations, and settlement, enable blockchain technology to offer substantial improvements. Consulting, implementation, integration, and maintenance & support are the key services that help asset managers to use, as well as help to develop and design blockchain solutions.
The compliance and risk management segment dominated the market in 2024, driven by increased adoption of blockchain-based asset management to comply with compliance and risk, reduce fraud, enhance data accuracy, security, and enable more efficient and effective asset processes. An immutable transaction helps to reduce the risk and compliance associated with the asset. The digital ledger is also a key component of blockchain-based asset management, enabling detection of potential risk and fraud. Blockchain technology in asset management helps to build trust between stakeholders and meet regulatory standards.
The smart contracts segment is the second-largest segment, leading the market. The smart contracts automate transactions and agreements, increase transparency, and enhance security, reducing the risk of unauthorized and fraud. Smart contracts provide automated tasks, including trade settlements, payments, and compliance checks, eliminating intermediaries and manual processes. The smart contracts enable high efficiency, accuracy of transactions, and improve trust among stakeholders by providing transparent and tamper-proof contracts.
In 2024, the cloud segment generated the largest market share. The organization has increased adoption of cloud-based blockchain technology in asset management to reduce the cost burden associated with infrastructure and maintenance of the technology. Public and private are two components of cloud-based blockchain in asset management solutions. The public cloud segment accounted largest market share due to high use of public cloud blockchain technologies for scalable and cost-effective infrastructure for deployment of blockchain solutions. The need for scalable, highly secure, and cost-effective solutions drives the adoption of cloud-based blockchain in asset management solutions.
The on-premises segment is anticipated to witness the fastest growth over the forecast period due to major adoption of on-premises-based blockchain in asset management solutions for greater control, security, customization, and reliability. On-premises solutions offer specific business needs and requirements, and higher reliability to the organizations. Large enterprises are the prior adopters of on-premise blockchain technology in asset management solutions, to enable high security and control over their robust IT infrastructure.
In 2024, the banks and financial institutions segment led the market due to increased adoption of blockchain-based asset management solutions to simplify banking processes and reduce structural costs. The blockchain-based asset management solutions, including asset tokenization, smart contracts, and digital asset custody, are the major solutions being used in banks and financial institutions, for more accessibility, an automated asset management process, and securing, storing, and managing assets for the clients. Banking and financial services are stepping toward becoming more efficient and diversified with the use of blockchain-based asset management technologies.
The hedge funds and pension funds segment is the second-largest segment, leading the market. The blockchain-based asset management solutions provide simple and sorted solutions to the fund administrations. The solutions streamline the calculation of net asset values, the subscription process, and investor data management. Organizations are adapting blockchain-based asset management solutions to enhance process efficiency, security, and transparency. The transparent and secure nature of blockchain technology helps asset managers to comply with regulatory requirements and reduce the risk of errors or unauthorized activity.
North America is the major player in the global blockchain in asset management market, driven by regions’ early adoption of new and innovative technologies, the existence of robust infrastructure, including finance and advanced technology, regulatory support for blockchain and digital assets, and heavy investments and funding in blockchain startups and projects. Collaborative approaches between major companies are fostering growth in the crypto trading market in North America.
The U.S. is leading the regional market, due to major financial institutions and technology businesses are exploring asset management potential and increased adoption of blockchain technologies. Additionally, the U.S. government supports the leverage of blockchain solutions to improve transparency, cost-effectiveness, and reduce the risk of fraud and data breaches in well-established infrastructure. For instance, in 2022, the U.S. government and companies invested US$4.2 billion in Blockchain solutions. Around 48% of blockchain startups are found in the U.S.
The upcoming Trump administration’s plans focus on the establishment of a crypto advisory council, aligned with the implementation of regulatory bodies for enhancing growth and innovation in the country's digital asset industry. This proposal helps to reserve national Bitcoin and brings pro-crypto officials to the top, fostering the adoption of blockchain-based asset management technologies.
Asia Pacific Blockchain in Asset Management Market & Trends
Asia Pacific is anticipated to witness the fastest growth over the forecast period, due to rising government regulatory establishments, driven by rapid adoption of blockchain technology and a growing digital economy. Asian countries are focusing on digital assets, including tokens and cryptocurrencies, driving growth in the regional blockchain technology market. The Southeast Asia and Middle Eastern countries have witnessed spectacular growth in recent years. The collaboration between the U.S. regulatory environment and well-established frameworks in jurisdictions like Singapore and the UAE is shaping global digital asset environments. With countries focusing on broader institutional adoption and developments and trends at the federal and state levels, regulations are fostering the need for blockchain-based asset management technology. Additionally, the ongoing war situation in Asia is shaping developments and the adoption of advanced blockchain-based asset management systems to protect and secure countries' financial ecosystems.
Countries like China, Japan, Singapore, and India are leading the Asian blockchain in the asset management market in 2024. China is the major player in the regional market, with growth driven by the country's government-initiated projects and collaboration among academia and industries for blockchain advancements, leading China to become a leader in blockchain technology. Government projects, including NEO, “China’s Ethereum.” Platforms for offering to build decentralized applications (dApps) and smart contracts are expanding the blockchain environment in the country. Additionally, the TRON, Qtum, and VeChain programs are also optimizing blockchain scalability.
Singapore is a significant player driving market growth due to the country's progressive regulatory framework for blockchain technology. The virtual asset service providers in Singapore are mandated to have a license, under law passed in April 2022, to conduct the country's business overseas, with a focus on anti-money laundering (AML) and countering the financing of terrorism (CFT) concerns (Source: https://www.trmlabs.com)
Bitwise Asset Management, a premier crypto-specialist asset manager with over $12 billion in client assets, witnessed tremendous growth during 2024 and has conducted $70M in Backing from Financial Institutions and Technology Investors for FY 2025.
In February 2025, Bitwise Asset Management, has completed a $70 million equity raise to expand its capabilities and services. The funding round was led by Electric Capital, with participation from MassMutual, Highland Capital, among others.
Companies' client assets have increased more than 10x to over $12 billion across three business lines, including beta, alpha, and on-chain solutions.
(Source: https://www.businesswire.com)
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