EY reports that high-net-worth investors plan to allocate over 6% of their portfolios to tokenized assets, while Fidelity’s 2023 study found that more than half of institutional investors plan to increase exposure to digital assets within three years.

Yet most financial advisors still rely on outdated systems: manual onboarding, slow compliance checks, delayed settlements, and limited liquidity. The result is a growing gap between what investors expect and what advisors can deliver.

Investors today expect faster onboarding, easier access, and real-time visibility across public, private, and hybrid strategies. But many advisors remain tied to legacy rails like endless paperwork, high minimums, and settlement cycles measured in days, not seconds.

These inefficiencies slow distribution, limit participation, and make it harder for advisors to meet modern client expectations.

Why Tokenized Funds Matter

Tokenized funds give advisors a better way to serve clients, unlocking capital, broadening reach, and removing operational drag while maintaining the same trust and compliance standards.

1. Faster Digital Onboarding : Smart contracts automate KYC and eligibility checks, reducing onboarding time from days to minutes.

2. Lower Minimums, Broader Reach : Fractional ownership lets smaller investors access institutional-grade strategies previously out of reach.

3. Direct, On-Chain Access : By recording assets on-chain, advisors can bypass intermediaries such as feeder funds and fund administrators, improving speed and transparency.

4. T+0 Settlement : Real-time settlement enhances liquidity for clients and frees up working capital.

5. Embedded Compliance : Investor rules and transfer restrictions are encoded into smart contracts, reducing manual oversight and regulatory exposure.

Even with these advances, tokenized funds remain difficult to access. Advisors and investors must navigate KYC, KYB, AML, and fragmented settlement processes while trying to identify credible opportunities in a fast-changing market.

Most tokenized funds are still fragmented and illiquid, offering inconsistent returns and little DeFi composability. For example, imagine an advisor helping a client allocate across tokenized Treasuries and private credit. The Treasury tokens yield around 5% on one platform, while the private credit vault yields 10% on another. Both exist in different ecosystems, with separate onboarding, liquidity pools, and settlement layers. To access them, the advisor must complete new KYC and KYB checks for each fund and platform, repeating the same compliance process multiple times.

Because these systems don’t talk to each other, advisors can’t optimize across yield sources or rebalance capital dynamically. They’re locked into isolated products, unable to move funds where returns are better or liquidity is stronger. Even though a clear yield arbitrage opportunity exists, the lack of interoperability and the knowledge gap around DeFi-based RWA looping strategies prevent most advisors and investors from taking advantage of it.

R2 is redefining how investors earn real-world yield on-chain.

By building the default consumer layer for passive income, R2 aggregates the best tokenized yield sources, from Treasuries and money-market funds to private credit into curated vaults that deliver optimized, risk-adjusted returns with instant liquidity.Each vault is actively managed and dynamically balanced so users always earn from the highest-performing institutional-grade yields available on-chain. Through R2, investors and advisors gain access to:

• Optimized Returns : Capital automatically flows to the best-yielding tokenized assets. Liquidity has been infused into ACRED, and partnerships with Securitize, Centrifuge, Fasanara, Goldfinch and Mercado Bitcoin combine leading tokenized products into one diversified, high-yield vault.

• Low Minimums, Permissionless Access : Anyone can start with as little as $100. No KYC, KYB, or manual onboarding checks are required to participate, making access to institutional-grade yield truly permissionless and borderless.

• Instant Liquidity and T+0 Settlements : Withdraw anytime. R2 vaults are built for on-demand redemption with no lock-ups or exit restrictions, and all trades and yield redemptions settle instantly. This ensures continuous liquidity, keeps capital productive, and removes the delays typical of traditional fund infrastructure.

• DeFi Composability : The R2 ecosystem is built for interoperability. Vault tokens sR2USD and sR2USD+ will trade on Pendle and Morpho, enabling looping strategies, structured yield products, and RWA-based yield amplification.

• Institutional Safety : All vault assets are safeguarded with Anchorage Digital Bank, ensuring institutional-grade custody, full regulatory compliance, and the highest security standards.

In essence, R2 is creating the first on-chain Fund of Funds (FoF), a single access point that turns tokenized Treasuries, MMFs, and private credit into a liquid, diversified yield engine.

Tokenized funds won’t replace advisors; they’ll strengthen them.As distribution moves toward programmable, compliant, and transparent infrastructure, advisors will remain the bridge between clients and opportunity.

At R2, we’re building that bridge, connecting institutional yield with digital distribution.