New York Life Sees Tokenization Transforming Customized Investment Portfolios

New York Life Investment Management (NYLIM) believes the future of blockchain tokenization extends far beyond faster settlements and 24/7 trading, with the technology poised to revolutionize how customized investment portfolios are built and managed.

Thomas Sy, head of multi-asset solutions at NYLIM, said blockchain has the potential to help asset managers deliver personalized investment strategies at a scale that traditional financial infrastructure cannot achieve. NYLIM oversees approximately $11 billion in multi-asset solutions within New York Life’s $807 billion asset management business.

According to Sy, the next phase of asset management will focus on tailoring portfolios to individual investors rather than offering standardized investment products. Blockchain technology can simplify the complex process of combining exchange-traded funds (ETFs), corporate bonds, private credit, and other financial assets into customized portfolios by embedding personalization directly into tokenized assets.

NYLIM recently partnered with blockchain platform Centrifuge (CFG) to bring one of its high-yield corporate bond strategies onchain, joining a growing list of major financial institutions embracing tokenized real-world assets (RWAs). Industry forecasts, including estimates from Citi, suggest the tokenized asset market could expand from roughly $30 billion today to as much as $5.5 trillion by 2030.

Beyond portfolio customization, Sy said tokenization can improve transfer agency, settlement, and other back-office operations. Lower operational costs could translate into better returns and more efficient services for investors.

Sy also highlighted stablecoins as a major catalyst for institutional blockchain adoption. With the stablecoin market now exceeding $300 billion, banks, payment companies, and fintech firms are increasingly using digital dollars for cross-border payments and treasury management. As more institutions move funds onchain, demand for tokenized investment products that generate yield is expected to grow.

While NYLIM is actively exploring decentralized finance (DeFi), Sy believes broader institutional participation will depend on further development of infrastructure, including tokenized collateral, central clearing systems, and prime brokerage services. He expects DeFi to become increasingly relevant as the blockchain ecosystem matures and institutional-grade financial infrastructure continues to evolve.