The world is undergoing a significant wealth transition, with an estimated $83 trillion inherited by Millennials and Gen Z over the next two decades. Predictions suggest that up to $4 trillion of this wealth could be tokenized on-chain by 2030. This presents a pivotal opportunity for wealth managers: they must adapt by including tokenization in their strategy or risk losing clients to those who will.

Tokenization Bridges Wealth Transition

Tokenization facilitates the infusion of traditional assets into digital marketplaces while maintaining their familiar structures. Assets that generate yields can be digitized and governed under known reporting frameworks, fundamentally speeding up capital movement—from years to days. This immediacy is what the emerging generation expects, making cryptocurrencies appear more like viable investments than risks.

A notable illustration of this trend is the Gulf Cooperation Council, where financial hubs like the Dubai International Financial Centre oversee roughly $1.2 trillion in family office assets, growing as families explore crypto-friendly environments. The infrastructure supporting tokenization is evolving, with services being launched and investment strategies moving into digital realms.

Looking toward 2025, jurisdictions such as Saudi Arabia and the UAE anticipate an influx of over 12,000 high-net-worth individuals, keen to engage with established tokenization frameworks.

However, the journey towards seamless wealth management isn’t without challenges. Regulations can vary significantly across regions, creating uncertainty. Potential clients may feel hesitant, with in-progress governance and custody solutions stalling their dealings in crypto. There is also a notable generational divide, as younger clients demand digital portfolios, while older decision-makers perceive them as unreliable.

Ultimately, those wealth managers who embrace these changes and actively build infrastructure for digital portfolios will be at the forefront of the next capital transfer.