The business case
What are DLT and digital assets for?
The business case has shifted to the revenue side of the ledger and is focused on delivery and returns. On average, firms are spending USD2.2m globally on their digital asset initiatives. As firms dig deeper into their wallets expectation for a rapid return on investment will deepen. And expectation may be particularly high in the US, where investment in DLT and digital assets is soaring.
Demonstrated performance has made it easier to secure investment dollars: over two-thirds of DLT and digital asset users prefer them to their traditional equivalents. The ability to issue, transact and mobilize assets more quickly is driving new and deeper liquidity pools and enabling firms to reach new investors.
1. Why? Return on investment - the shift from cost reduction to generating profit
DLT and digital assets have to pay for themselves in revenues
% change in staff engagement on DLT and digital assets in 2024/2025
As we saw in choice of asset classes, revenue is driving the DLT agenda today. A stunning 42% of firms (a three-fold increase from last year) are chasing new product revenue and distribution, far outpacing cost savings and operational efficiency (which dropped by 10%).
This change in mindset – to the “P” in P&L – has been a necessary step forward which is clearly demonstrated in the engagement data from banks/brokers and investors. The sales and business development teams who carry the revenue line are deeply committed with the buyside's front office particularly tuned in at 55%. And, where the search for revenue goes, funding follows - fuelling progress and the ability to move to production and live transactions.
One unexpected change was the decrease in expected Treasury benefits which bucks the trend of other findings in this year's report. However, like other data points this year, we believe this reflects a moment in time.
Treasury may not be the driving force, but it will be a major beneficiary of the focus on collateral and financing.
In 2024 we looked at how Broadridge DLR was able to mobilize and optimize assets, resulting in capital and funding efficiencies that continue to amplify. In addition to eliminating borrowing premia, penalties and overdraft fees, DLR participants have seen capital charges and clearing costs decline. Precisely the benefits Treasury will want to welcome.
Tokenizing and using bonds as collateral will not only reduce custody fees and improve operational efficiency, they will have a similar geometric impact on LCR, NSF and other key ratios financial indicators and. Treasury may well see significant improvement without being fully aware of the cause.
Key driver of DLT and digital asset investments
(% of respondents citing each, 2023-2025)
2. How much are we investing? Digital assets cost $2.2m per firm
Who’s hot? Follow the money
Funding for DLT projects has multiplied 3x since 2020, with an average USD4m allocated to digital assets and DLT globally. And to underline that engagement does not always equate to spend as it is banks and brokers alongside technology companies who are spending 10x more than investors.
The funding numbers reflect the shift in momentum noted earlier, but its where the spending is now concentrated which marks the starkest shift.
North America is now outspending Europe and Asia by over 200% And despite the promise and potential Europe is lagging behind APAC in both DLT and digital asset investment.
That’s not unexpected given the accelerated rate of change in the US, but the numbers are large – North America averages over USD10m and outstrips every other market by a factor of multiples. Individual firm investment is substantial with nearly one-third of North American firms spending over USD10m across digital initiatives.
Average DLT and digital asset budget growth (2024/2025 YoY)
% change in DLT / digital assets spend from 2024 to 2025
Overall, annual spending is up by 7% globally, but only 43% of firms have actually increased their allocations (primarily located in APAC and the US).
A deeper look at the rate of spend illuminates a risk of stalling. In every market except the US, 50-80% of firms are spending less than USD500.
Is there reason to be cautious? The funding slowdown may reflect a moment in time, particularly in Europe where key trials have concluded but next steps have not yet been fully defined. This might account for some of the 20% of firms now sitting on the side-lines, but we will have to wait and see.
3. How well do digital assets compare? Up to two-thirds think better than traditional assets
Fund tokenization and automation lead the benefits
Rising adoption and increased confidence is highlighting the performance of digital assets and DLT versus their traditional assets and technology peers. Across a variety of typical use cases, half to two-thirds of respondents in 2025 prefer digital assets and DLT over working with traditional assets and technology – a compelling addition to the business case.
The greatest value is found in automation/programmability and the ability to reach new customers with liquidity/mobility considered favourably also. These findings reinforce the ongoing focus on issuance, fund tokenization, and distribution, and bolster the emerging consensus around collateral and securities financing.
DLT and digital assets are coming of age with momentum driven by better customer reach, less friction and new revenue streams. Cost efficiencies and streamline operations provide an added, welcome punch.
How do digital assets compare with traditional assets in each use case?
Digital assets vs traditional assets: Average net score of each activity by its benefits:
4. Why not? Liquidity restrictions has come to the forefront of the industry agenda
Convergence is imperative to reap the benefits
2024 was a story of isolation: liquidity was forming in unconnected blockchain pools where only a few counterparties traded against each other. Convergence has turned out to be the turnkey issue for DLT. Removing the blocks that artificially constrain digital liquidity will enable asset mobility and long-desired capital benefits.
As we have seen so far in this year's report, liquidity and asset mobility are common themes, priorities and expectations of DLT and digital assets. It is difficult to quantify just how much of an impediment 'limited liquidity' is to the business case in order to catapult it from 'lack of compelling' to 'truly compelling'. However, in 2025/2026, liquidity is poised to transform from a vicious cycle to a virtuous circle.
Another major hurdle to overcome? Legal certainty, now a concern for 28% of respondents. It’s crucial for contracts, mandatory for collateral eligibility and essential in a default scenario. Based on our conversations, it’s also a top priority for law firms. We therefore welcome (and expect) clearer guidance on asset control, token recovery and other critical industry issues from global policy makers in the near future.
Top 3 issues with DLT and digital assets per year
(% of respondents blocked by each obstacle)
5. When? DLT and digital assets have to deliver quickly
In the era of tokenization
There’s a notable shift in expectations now that revenue and revenue generators are steering the business case. Firms want faster delivery on that USD2.2m spend. Fund managers and tech providers have the most aggressive schedule for ROI, but banks/brokers and market operators have also accelerated their timeframes.
A geographic slice shows the US is coupling its fast and furious entry with an equivalently rapid forecast for results. The UK and Hong Kong are also looking for near term payoff from their longer, sustained history of DLT and digital asset exploration.
Returns in <2 years may be overly optimistic, but despite a more conservative view from the banks, brokers, market operators and many major markets, the message is clear. It’s time for DLT and digital assets to make a significant contribution to financial performance. The risk and cost of protracted deployment and momentum is now too great for many.
Expected time-frame for return on DLT and digital asset project investment
Benchmark your own DLT plans here
How do your DLT project plans and roadmaps compare with those of your peers? Make sure you use this unique opportunity to benchmark your work with over 350 other specialists today.
Thanks to the extensive reach of our industry survey, we can provide you with detailed, personalised analytics in your own benchmarking scorecard - as soon as you have completed the online survey. Click below to begin and we will send you your scorecard straight away.
