HSBC Global Banking and Markets reposted this
It’s easy to get carried away by the idea of capital markets running purely on digital platforms and being better, cheaper and faster than ever before. Tokenisation – or the digital representation of assets – is full of promise, because it can enable securities or commodities, for example, to be more easily and quickly transferred between financial institutions and customers. It can also break down assets into smaller, more affordable pieces so that more people can invest in them, democratising markets. That’s the dream. But it will take time. It will involve building new digital infrastructure for capital markets and making compatibility between systems a reality. Find out more below.
Shail S.
2mo
Tokenization holds great promise for transforming capital markets by making asset transfers faster, cheaper, and more accessible. It could democratize investing by breaking down assets into affordable pieces, allowing more people to participate. However, realizing this vision requires significant advancements in digital infrastructure and system interoperability. Question: What are the main obstacles, both technical and regulatory, that need to be addressed for tokenization to become widely adopted in capital markets?
Frank Visser
3mo
Great insights, The digital transformation of capital markets is indeed crucial for enhancing efficiency and transparency. In addition to the points you've raised, I believe decentralized finance (DeFi) can play a significant role in this transformation. By leveraging blockchain technology, DeFi can provide several benefits: 1. Increased Transparency:Every transaction on a blockchain is immutable and publicly verifiable, reducing the risk of fraud and increasing trust among participants. 2. Cost Efficiency: DeFi platforms can reduce costs by eliminating intermediaries and automating processes through smart contracts. 3. Accessibility: DeFi can democratize access to financial services, allowing a broader range of participants to engage in capital markets. 4. Innovation:The open nature of DeFi encourages innovation, with new financial products and services being developed rapidly. DeFi's potential to complement traditional financial systems and drive the digitalization of capital markets is immense. Looking forward to seeing how these technologies can work together to create a more efficient and inclusive financial ecosystem. #DeFi #Blockchain #DigitalTransformation #CapitalMarkets #Innovation #FinancialServices
Corinne Neale
3mo
Innovations on the #CantonNetwork
Elisabeth M.
3mo
That tokenization dream is becoming reality much quicker than we all might think 💡
john Gubert
2mo
Absolutely agree with article. It is critical that the new age is part of the global ecosystem and not a series of orphan developments.
HSBC Group Head of Digital Assets & Currencies
3moAs per Greg’s article, digital asset markets are moving out of their first phase, towards more interconnectivity, liquidity and trading choice. HSBC is excited to be among the pioneers.