While the concept of tokenizing equities often captures headlines, fixed-income instruments are currently leading the charge in institutional adoption by serving as a vital collateral layer.
Andy Baehr, managing director of asset management at GSR, noted that while mass equity tokenization is often discussed, fixed-income assets are where tokenization is already proving its practical value in institutional trading.
The Appeal of Fixed Income
Bonds are leading the tokenization sector due to their valuation clarity. Featuring well-defined cash flows, maturity dates, and credit ratings, bonds are easier to price, custody on-chain, and accept as collateral compared to equities.
Major financial institutions have already deployed live infrastructure for these assets:
- HSBC’s Orion platform: Handled over $3.5 billion in cumulative tokenized bond issuances.
- Goldman Sachs’ GS DAP platform: Exceeded $700 million in tokenized fixed-income instruments.
Research published by the DTCC on May 13, 2026, supported these findings, demonstrating that tokenized traditional assets can improve collateral mobility and reduce capital requirements.
Collateral as a Core Application
In traditional finance, moving and posting collateral involves slow, complex processes. Tokenization compresses these timeframes, allowing a tokenized Treasury bond to be transferred between counterparties in minutes rather than days. This mobility allows firms to post necessary collateral promptly and redeploy freed-up capital.
DTCC's research emphasized that reduced capital requirements deliver operational advantages that appeal directly to corporate financial officers.
GSR’s Expanding Strategy
Baehr joined GSR as managing director of asset management in February 2026, following roles at CoinDesk Indices and digital asset strategies. His appointment aligned with GSR's expansion beyond its roots as a crypto market maker into traditional asset management.
In April 2026, GSR launched BESO, an actively managed multi-asset crypto ETF holding Bitcoin, Ethereum, and Solana. Together, the institutional infrastructure developed by institutions like HSBC, Goldman Sachs, and the DTCC forms the foundational plumbing for hybrid portfolios combining digital-native and tokenized traditional assets.
