Generation Z—digital natives born between the mid-1990s and early 2010s—are rapidly redefining the global banking landscape. With their fluency in technology, demand for hyper-personalization, and strong social and environmental values, Gen Z is not only open to but actively seeking innovative financial products, including those powered by tokenization and digital assets. For this generation, finance is not just about returns; it’s about access, transparency, and impact.
Tokenization is the process of creating digital representations of real-world or digital assets on a blockchain. This technology enables:
Gen Z’s relationship with money is shaped by digital fluency, skepticism of traditional institutions, and a desire for purpose-driven action. They are:
Tokenized assets are making it possible for Gen Z to invest in markets that were once out of reach. For example, tokenized real estate allows individuals to buy fractions of a property, opening up property investment to a much broader audience. This democratization of access is particularly appealing to a generation that values inclusivity and financial empowerment.
Banks and asset managers are launching funds and products where tokenized assets are tied to environmental or social outcomes. For instance, ESG-linked tokens can represent investments in renewable energy projects or companies with strong social impact credentials. These products enable Gen Z to track the real-world impact of their investments, aligning financial participation with personal values.
Token-based crowdfunding platforms are emerging as powerful tools for social change. By issuing tokens to raise funds for social initiatives, Gen Z can directly support causes they care about. Blockchain technology ensures that every transaction is transparent and traceable, building trust and accountability into the process. This model is already being used to fund everything from community projects to public infrastructure, with the added benefit of creating liquid, tradable assets for supporters.
In North America, Gen Z’s expectations are shaped by a mature digital ecosystem and a strong emphasis on social justice. Neobanks and fintechs have gained traction by offering innovative products such as Buy Now, Pay Later (BNPL) and crypto wallets, while established banks leverage their trust and scale to experiment with digital assets and metaverse engagement. Regional banks are partnering with influencer platforms and creator economies, tailoring financial products for gig workers and digital creators. ESG-focused investment products and token-based funding mechanisms allow Gen Z to support social causes transparently.
European Gen Zers benefit from progressive regulations such as PSD2 and open banking, which have fostered a vibrant fintech ecosystem. Here, seamless integration between banks and third-party apps is the norm, and hyper-personalization is achieved through advanced data analytics and AI. Digital-only banks are leveraging tokenization to offer fractional ownership of assets and new investment vehicles, particularly for underserved niches like gig workers or young families.
Asia-Pacific is home to some of the world’s most dynamic digital banking markets. Gen Z’s expectations are shaped by super-app ecosystems—platforms that integrate banking, payments, and lifestyle services. In markets like Hong Kong and Singapore, tokenization is being used to create new investment vehicles, including fractional ownership of real estate and digital collectibles, and to facilitate transparent, community-driven funding for social causes.
To localize digital asset offerings for Gen Z, banks should:
Gen Z is not just another customer segment—they are the future of banking. Regional banks and fintechs that understand and adapt to the unique needs of Gen Z in their markets will be best positioned to win loyalty and drive growth. By combining global perspective with local expertise, financial institutions can bridge the gap and deliver the digital, personalized, and purpose-driven experiences Gen Z demands. Tokenization is not just a technological shift—it’s a new way to align finance with the values and ambitions of a generation determined to make a difference.