SMFSC Backs Tokenisation to Transform Asset Management

The San Marino Financial Standard Council (SMFSC) — a financial self-regulatory association dedicated to promoting transparency, honesty, and responsibility within the global financial system — has expressed its support for the adoption of tokenisation technologies to enhance efficiency, transparency, and innovation in the asset management sector.

Tokenisation — the process of converting ownership rights in assets into digital tokens — has the potential to redefine how assets are created, traded, and managed, allowing for greater liquidity, reduced operational costs, and improved accessibility for investors.

“Tokenisation represents an evolution in financial infrastructure,” the Council said.
“When developed responsibly, it can make asset management more efficient, inclusive, and secure.”

Promoting Efficiency and Transparency

In its statement, the SMFSC outlined that tokenisation could streamline settlement processes, reduce intermediaries, and improve record accuracy through the use of distributed ledger technology (DLT).
These developments align with the Council’s self-regulatory objectives to support market efficiency while maintaining strong governance and investor safeguards.

The SMFSC noted that the technology can bring particular advantages to:

• Fund administration, by automating compliance and reporting tasks;
  
• Asset distribution, through secure and traceable ownership transfer;
  
• Liquidity management, by enabling fractional investment and 24/7 trading capabilities;
  
• Market transparency, via immutable and verifiable transaction records.
  

However, the Council also cautioned that innovation must be accompanied by robust standards for data protection, cybersecurity, and operational resilience.

Encouraging Responsible Innovation

As part of its Digital Finance and Market Integrity Initiative, the SMFSC is engaging with asset managers, technology providers, and regulatory counterparts to develop voluntary guidelines that encourage the responsible application of tokenisation.
These guidelines will focus on:

• Governance and auditability of tokenised instruments;
  
• Investor protection and risk disclosure;
  
• Interoperability and technical standards for market participants;
  
• Environmental sustainability in digital infrastructure operations.
  

“Innovation cannot come at the expense of accountability,” the Council stated.
“Self-regulatory standards help ensure that tokenisation develops in a way that protects investors while strengthening market integrity.”

Supporting a Global Transition

The SMFSC highlighted that tokenisation is part of a broader global movement toward the digitalisation of financial markets.
By establishing transparent self-regulatory principles, the Council aims to help San Marino’s financial community participate confidently in this transformation, aligning with international efforts led by global financial standard-setters.

SMFSC will continue to monitor developments in tokenised securities, fund structures, and secondary trading platforms, sharing insights with market participants through reports and educational programmes.

A Step Toward the Future of Asset Management

With its support for tokenisation, SMFSC reaffirms its long-term vision of a modern, efficient, and trustworthy financial ecosystem built on collaboration and technological progress.
The Council views tokenisation not as a replacement for traditional finance, but as a tool to strengthen transparency and broaden market participation under ethical, self-regulated standards.

“Tokenisation offers the potential to reshape asset management for the better,” SMFSC concluded.
“Our role is to guide this innovation responsibly — ensuring that efficiency, trust, and integrity remain at the core of the financial system.”