Why do some tokenization pilots succeed whilst others stall?
Lessons from JPMorgan, Siemens & UBS vs. IBM x Maersk Shipping Tokenization Pilots
As a continuation from the previous article, this article highlights that while some tokenization pilots undertaken in the industry seem to be maturing into viable platforms or projects, some others have quietly wound down.
For the successful pilots, we are using the examples from the previous article of JP Morgan, Siemens and UBS. For the ones that wound down, we are looking at TradeLens, the shipping tokenization project of IBM and Maersk.
So what are the key lessons learnt from these examples? What are some of the key success factors and common pitfalls to bear in mind?
Let’s first examine what has worked in successful institutional pilots.
JPMorgan Kinexys — Building Core Infrastructure
JPMorgan Kinexys (Digital Assets platform and Tokenized Collateral Network) has already processed billions in tokenized collateral settlements. The bank launched JPM Coin for institutional payments and partnered with BlackRock and Barclays for live repo transactions. Why it works:
- Solves a real pain point — intraday liquidity and real-time collateral settlement.
- Integrated with own and clients infrastructure.
- Backed by regulatory engagement and scale.
Siemens — Disintermediated Bond Issuance
In 2023, Siemens issued a €60 million digital bond on the Polygon blockchain, bypassing traditional intermediaries. Why it works:
- Tackles inefficiencies in bond issuance and settlement.
- Public chain use allowed direct investor access.
- Cost savings and reduced complexity in administrative processes.
UBS — Wealth Use Case Through Tokenization
UBS launched UBS Tokenize to give its clients fractional access to illiquid assets like real estate and private equity. It participated in the MAS Project Guardian and launched tokenized funds using smart contracts. Why it works:
- Aligns with the bank’s private wealth strategy.
- Meets investor demand for diversification and liquidity.
- Built in a regulated sandbox environment with strong institutional buy-in.
When Tokenization Stalls: The IBM and Maersk Case
One of the most notable failures in the enterprise blockchain/tokenization space was IBM and Maersk’s TradeLens.
IBM + Maersk: Shipping Tokenization via TradeLens
TradeLens was a global shipping and supply chain platform using blockchain (Hyperledger Fabric) to digitize and track shipping documents and logistics data.
Why it didn’t work:
- Despite initial traction, adoption by rival shipping companies was limited.
- The value proposition was diluted by lack of interoperability and a perception of centralization (since Maersk, a competitor, was co-leading).
- Without industry-wide adoption, network effects never materialized — a fatal blow in a multi-party ecosystem.
TradeLens was shut down in 2022, despite five years of development. And technology was not the culprit this time.
Key Patterns: Why Some Succeed, Others Don’t
From these examples, some patterns emerge:
Success Drivers:
- Addresses real, high-impact problems (e.g., collateral, intraday liquidity, private market access)
- Built with internal alignment or strong client need
- Compatibility with existing infrastructure
- Regulatory buy-in or sandbox support
- Minimal dependency on external buy-in
Common Pitfalls:
- Lack of network effects in multi-party environments
- Any perceived competitive bias in governance (as with Maersk in TradeLens)
- Unclear value proposition or inadequate Return on Investment (ROI)
- Overly complex integration with legacy systems
- Limited regulatory clarity or support
The Takeaway: From Hype to Scalable Value Propositions
- Sound technology is not the only prerequisite for a successful project. Adoption is key and depends on building trust, inherent incentives and strategic alignment. Projects that succeed often align within an existing ecosystem, solving real-time pain points instead of reinventing the wheel.
- Meanwhile, failures like TradeLens tend to inform us that infrastructure without broad participation is just software. Scaling of tokenization requires value to be distributed rather than purely being digitized.
Conclusion
- Tokenization will likely play a foundational role in the future of capital markets, but only for those who match tech innovation with commercial and strategic fit.
- Successful pilots don’t just prove blockchain works, they prove it matters.
References
- https://www.ledgerinsights.com/tradelens-blockchain-ibm-maersk-shutters-shipping/
- https://www.jpmorgan.com/kinexys/index
- https://www.ledgerinsights.com/jp-morgan-tokenized-collateral-network-tcn/
- https://www.coindesk.com/business/2023/10/11/jpmorgan-debuts-tokenized-blackrock-shares-as-collateral-with-barclays
- https://coingeek.com/singapore-sbi-ubs-issue-tokenized-funds-under-project-guardian/
- https://www.ledgerinsights.com/ubs-trials-blockchain-for-expanding-digital-gold-reach-geographically/
- https://www.ledgerinsights.com/siemens-digital-bond-blockchain/
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Artist Bio
Gaya Chandrasekaran is a London-based contemporary artist. Born in the coastal city of Chennai, India, her artistic practice is deeply influenced by the vivid colors and rich cultural heritage of her upbringing. Working primarily with acrylics, palette knives, and gilded gold leaf, she creates layered, emotive landscapes that invite quiet introspection and a sense of transcendence.
Gaya has trained in India and at the Slade School of Fine Art in London. Her artworks have been exhibited widely across the UK, US and Europe, with features in prominent art publications such as Contemporary Art Curator, Artist Talk, and ArtistCloseUp magazines.
Her paintings have been reviewed by Tabish Khan, a renowned London art critic, and are held in private collections across the US, UK, Spain, Italy, Brazil, and India — including a permanent display at the London Business School.
Through her abstract landscapes, Gaya explores themes of shared human experience — the search for meaning (Quest), the inner voice of contemplation (Soliloquy), cycles of transformation (Rebirth), and the pursuit of spiritual growth (Nirvana). Her paintings serve as a visual meditation on nature and the profound emotional terrain of life itself.
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