The primary “on-ramp” for Canadian pension plans into digital assets is tokenization, which involves converting real-world assets like bonds or real estate into blockchain-based tokens. This method is gaining mainstream attention due to its potential to combine crypto’s efficiency with traditional finance’s stability. According to the Crypto Banking 2025 report by Henley & Partners, tokenized private credit and real estate are emerging as the new rails of wealth
, offering faster settlement, fractional ownership, and real-time tracking.
This aligns with insights from Coinbase Institutional, which views as a pivotal year for tokenization growth due to improved technology, better compliance tooling, and potential regulatory enhancements. The total value of tokenized real-world assets, excluding stablecoins, grew over 60% from $8.4 billion at the end of to $13.5 billion by . Projections suggest this sector could grow to a minimum of $2 trillion and a maximum of $30 trillion over the next five years.
The cautious re-engagement stems from several factors. Initial losses prompted a re-evaluation of direct crypto exposure. More recently, as institutional interest globally has grown and decentralized finance (DeFi) has stabilized, correlations between crypto and tech stocks have weakened, potentially offering diversification benefits. Mike Foy, in a Henley & Partner’s report, described a US$2 trillion bot economy
of algorithmic agents autonomously managing digital assets, which may contribute to more efficient and less correlated digital markets. Furthermore, the Bank of Canada acknowledges that tokenization could improve liquidity, transparency, and efficiency in private markets
, aligning with pension fund mandates. The Office of the Superintendent of Financial Institutions (OSFI) has also begun setting guidance for federally regulated institutions on crypto exposure and custody, replacing a previous regulatory vacuum.
Specific timelines for when major Canadian pension funds, beyond CDPQ‘s fintech backing, will actively deploy capital into tokenized assets or digital infrastructure remain undisclosed. The exact dollar amounts earmarked for these new initiatives are also not publicly available. Furthermore, the full scope of other Canadian pension funds quietly exploring these avenues has not been detailed.
The trajectory for Canadian pension funds involves a continued focus on building secure, transparent blockchain infrastructure rather than speculative trading. Dominic Weibel, Head of Research at Bitcoin Suisse and a contributor to The Crypto Wealth Report 2025, notes that digital assets are entering the institutional era
, emphasizing the importance of infrastructure like custody and compliance tools. As regulatory clarity improves and tokenization matures, Canada’s conservative pension funds may become credible early movers in this evolving space, legitimizing crypto as an institutional asset class.
Institutions considering digital asset exposure should prioritize understanding emerging regulatory frameworks from bodies like OSFI and global standard-setting bodies. Evaluating robust, institutional-grade custody solutions and engaging with fintechs specializing in compliance tools is crucial. Furthermore, a thorough assessment of tokenization’s potential benefits for portfolio diversification and operational efficiency, distinct from direct cryptocurrency speculation, is recommended. Organizations should also monitor reports from authoritative sources on the growth of the tokenized real-world asset market.
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