Corporate bonds are set to be digitized through a partnership between SDX and Pictet
In a significant stride towards the wider adoption of tokenized securities, the SIX Digital Exchange (SDX) and Banque Pictet et Cie have successfully completed a joint pilot to tokenize corporate bonds. This follows similar explorations by JP Morgan and Apollo Global, and previous trials conducted by Pictet and Credit Suisse.
The latest developments and trends in tokenizing corporate bonds reflect a broader shift towards customization and diversification of client portfolios by wealth managers, driven by advancements in blockchain technology and increasing institutional interest.
The tokenization of real-world assets has seen significant growth, with the total value locked (TVL) across major protocols reaching $12.83 billion as of mid-2025, up from $7.75 billion at the start of the year. This momentum is expected to continue, with projections suggesting that tokenized assets could reach $16 trillion by 2030.
Institutional investors are driving the demand for tokenized assets, seeking yield, transparency, and balance sheet efficiency. The tokenized Real-World Asset (RWA) market has surged to over $25 billion in Q2 2025, growing 245 times since 2020.
Tokenization allows wealth managers to offer clients access to a broader range of assets, including corporate bonds, with lower entry barriers. This can lead to more customized portfolios, catering to diverse investor needs. The trend is expanding beyond traditional assets, with notable examples in private credit and loans, suggesting potential for further customization.
The use of blockchain technology provides a transparent and secure platform for tokenized assets, enhancing their appeal for wealth managers. Leading public chains like Ethereum and Solana are pivotal in supporting these assets. Regulatory progress across key jurisdictions is facilitating the adoption of tokenization, paving the way for its integration into mainstream financial infrastructure.
The pilot conducted by SDX and Pictet enables fractional quantities of bonds to be allocated to individual portfolios managed by Pictet Asset Management. This could lead to improved personalization of client portfolios, enhancing the overall investment experience. The trials suggest the potential for tokenization to facilitate greater customization and personalization of client portfolios.
The versatility of tokenization is demonstrated by its application to a variety of financial instruments, as shown by the trials conducted by Pictet, Credit Suisse, JP Morgan, and Apollo Global. These trials demonstrate the ongoing exploration and development of blockchain technology in the financial industry.
The focus of the JP Morgan and Apollo Global trial was on the mass customization of portfolios by wealth managers, specifically alternative funds, rather than corporate bonds. In contrast, the SDX pilot involves tokenizing existing bonds held in the SIX central securities depository (CSD), SIX SIS.
The trials conducted by these leading institutions demonstrate the growing interest in tokenization within the financial industry, with the potential to revolutionize the management of client portfolios through improved efficiency and automation. As tokenization continues to advance, it is likely to play a significant role in reshaping the financial landscape.
Financial institutions like JP Morgan and Apollo Global are leveraging blockchain technology for tokenization to drive customization and diversification in client portfolios, as demonstrated by their trials with alternative funds. The SDX and Pictet pilot, focusing on tokenizing corporate bonds, similarly showcases how tokenization could provide insights into improved personalization of portfolios and the automation of the bond allocation process. These explorations aim to further reshape the finance industry by 2030, with projections suggesting that tokenized assets could reach $16 trillion.
