The Banker’s Post

“The industry is ready for tokenization.” At Sibos 2023, Chainlink Labs team members met with world-leading financial institutions. One insight from talking with industry leaders was that the financial system is ready for tokenization. Since the September event, there have already been a number of massive leaps forward: 1. HSBC launched a blockchain-based platform for tokenized gold. 2. SIX Digital Exchange settled the first transaction of tokenized assets on a regulated and live DLT platform using a wholesale CBDC. 3. BlackRock CEO Larry Fink shared on CNBC that “ETFs are step one in the technological revolution in the financial markets. Step two is going to be the tokenization of every financial asset.” Not to mention, Chainlink is collaborating on tokenization use cases with Swift, DTCC, ANZ Bank, Vodafone, ARTA TechFin, and many others. In 2024, the adoption of tokenized assets is set to expand even further. #TheFutureIsOn

Tokenized cash will be the first tokenization product to reach MASS adoption status, defined as >$1 trillion market cap. Here is why ⬇ 1️⃣ Demand is growing. From start of 2024 to today, the total market cap for tokenized cash on public blockchain grew 25%+ to $164 billion. The only use case for tokenized cash used to be store of value onchain and payment. This by itself is running at $10 trillion a year. With the launch of various asset management products such as tokenized MMF and tokenized basis trading, onchain capital will have direct access to many of the traditional investment management products and more. Coupled with better efficiency, cash will increasingly likely to stay onchain, instead of being off-ramped. 2️⃣ Demand is global. On the US side: State Street was exploring launching its own tokenized cash product last week following J.P. Morgan and PayPal in the US. On the other side of the globe, regulators and firms have been actively engaging in stablecoin pilots and policy framework, including: - Standard Chartered HK and Hong Kong Telecom are exploring stablecoin issuance - JD.COM's HK Coinlink subsidiary is also exploring the idea. 3️⃣ The regulatory environment is being updated to pave the way for regulatorily compliant mass issuance. Hong Kong Monetary Authority (HKMA) recently published a legislative proposal outlining stablecoin regulation covering: - Capital requirement - Licensing requirement per investor distribution type - Reserve asset eligibility - Audit and reporting requirement - Interest ban - Redemption process McKinsey & Company says tokenized cash is the first tokenization product to reach meaningful adoption, defined as >$100 billion market capitalization. I believe tokenized cash will be the first mass-adopted tokenization product. Tokenized investment products with deep existing liquidity such as MMF will follow. Do you agree? Leave your comments below. ⬇ I write about tokenization and digital asset management. If you want to stay up to date with trends and opportunities, you can: ✅Follow me and repost ✅Join 4,000+ readers at The Crypto Adoption Curve newsletter https://lnkd.in/em5V4k-v ✅Save 40 hrs a week & get exclusive insights by Subscribing at https://lnkd.in/gTxp8uWM #digitalassets #tokenization #financialservices

Tokenization is eating the world, one asset at a time. ⬇ The recent report from KPMG Singapore and Singapore FinTech Association (SFA) highlighted the 4 areas that tokenization is having transformative impact. Here is the list, rearranged in descending order of their adoption stage. 1️⃣ Cash/deposits - this is at the most advanced adoption stage of the four Tokenized cash/deposits have immediate economic and operational benefits in reducing payment settlement time, cost and risk. Examples include USDT (https://lnkd.in/eQjPwyPM), JPM Coin (https://lnkd.in/eQVG2Uza) 2️⃣ Financial assets - this is the next most widely adopted use case The near real-time settlement feature of tokenization makes financial asset transactions faster, cheaper and safer. Examples include tokenized money market fund (https://lnkd.in/eMaPDid3), tokenized intraday repo (https://lnkd.in/em5V4k-v), and tokenized FX (https://lnkd.in/eMsWs-YP) 3️⃣ Real assets Tokenization of real assets allows for fractional ownership that is united on a single ledger, theoretically making them easier to attract liquidity. Examples include real estate (https://lnkd.in/gNh42JnV) and gold (https://gold.tether.to/) 4️⃣ Intangible assets These are the least adopted tokenization use case due to the nascent nature of digital asset ecosystem as these assets concern mostly with IPs, identities and consumer loyalty programs. Examples include Starbuck's Odyssey program (https://lnkd.in/eiEgHtBT) Do you agree with the list? Leave your comment below. I write about tokenization and digital asset management. If you want to stay up to date with trends and opportunities, you can: ✅Follow me and repost ✅Join 4,000+ readers at The Crypto Adoption Curve newsletter https://lnkd.in/em5V4k-v ✅Save 40 hrs a week & get exclusive insights by Subscribing at https://lnkd.in/gTxp8uWM #digitalassets #tokenization #financialservices

Our team just returned from #DigitalAssetsWeekLondon, alongside industry leaders JPMorgan Chase & Co., Citi, Bank of England, BlackRock and our esteemed legal council Jones Day. Some may consider certain topics taboo, but the truth is that what you hear publicly and in the news may differ from the facts. It might surprise you to know that industry giants are fully embracing blockchain, tokenization, and smart contract automation. The signs are clear. Behind closed doors, the future of finance is being constructed within walled gardens. Every day, your favorite tier 1 institution carefully and meticulously unveils new use cases that showcase the potential of this technology. Now is the time. Nomyx is Ready.

“The industry is ready for tokenization.” At Sibos 2023, Chainlink Labs team members met with world-leading financial institutions. One insight from talking with industry leaders was that the financial system is ready for tokenization. Since the September event, there have already been a number of massive leaps forward: 1. HSBC launched a blockchain-based platform for tokenized gold. 2. SIX Digital Exchange settled the first transaction of tokenized assets on a regulated and live DLT platform using a wholesale CBDC. 3. BlackRock CEO Larry Fink shared on CNBC that “ETFs are step one in the technological revolution in the financial markets. Step two is going to be the tokenization of every financial asset.” Not to mention, Chainlink is collaborating on tokenization use cases with Swift, DTCC, ANZ Bank, Vodafone, ARTA TechFin, and many others. In 2024, the adoption of tokenized assets is set to expand even further. hashtag#TheFutureIsOn

Metaco - Scaling #Tokenization Despite the real advantages that tokenisation could offer, the volume of tokenised assets remains low, relative to the potential. One noteworthy instance is represented by tokenised #cash, which takes the shape of completely backed "#stablecoins" and tokenised #bankdeposits. The value of U.S. treasury assets on public #blockchains has surpassed USD 650 million recently and continues to grow at a healthy clip. In the near-term, tokenisation of financial and real-world assets #RWA is projected to reach up to USD 5 trillion by 2030, with notable growth in #private markets and the #repo, #securitiesfinancing, and #collateral markets. Ultimately, the long term potential value of assets to be tokenised is massive: from the USD 250 trillion global capital markets to the USD 300 trillion-plus global real estate market. For a more widespread adoption, challenges such as access to expertise, inconsistent regulatory treatment, and a lack of mature, interoperable networked infrastructure need to be addressed. Many banks today recognise the immense potential of tokenisation but also acknowledge the difficulty of going beyond proofs of concept to demonstrating real value and compelling business cases. To scale tokenisation effectively, infrastructure must be scalable, standardised, and networked, enabling seamless communication and data sharing. 

Discover the world of #securitytokens with Magic Circle Technology Limited 1/ Compliant issuances and trading that meet global regulations ensure a secure and reliable market. #FinTech #RegTech 2/ Accessible globally, security tokens open up investment opportunities for international investors, breaking down geographical and financial barriers. #GlobalFinance 3/ Innovative trading features include P2P transfer, empowering investors with financial autonomy to own and manage assets directly, and instant settlement to streamline transactions. #CryptoTrading 4/ Enjoy unparalleled market liquidity with 24/7 trading capabilities. Security tokens operate round-the-clock, catering to a global audience and eliminating traditional market constraints. #RWAs 5/ Interoperability with cryptocurrencies enhances flexibility, allowing seamless transitions between traditional and digital assets, fostering a new level of integration in financial portfolios. #FutureOfFinance 6/ Security tokens pave the way for diverse applications beyond trading: they're reshaping sectors like lending, incentivizing stakeholders, and expanding ecosystems. #DeFi #CryptoInnovation The future of finance is here – embrace security tokens for a revolution in investment and global trade! https://lnkd.in/gPhqKh7a https://lnkd.in/gEM_Z7F8

Financial Times Crypto & Digital Assets Summit - Day 1 The day started with a bang - Will tokenisation transform private markets? Nikou Asgari moderated an electrifying conversation between Diana Biggs at 1kx Puneet Singhvi at Citi Marcus Grubb at IPMB, and Cynthia Lo Bessette at Fidelity Investments ✅ Tokenomics must be clear (and make economic sense) ✅ Standardisation without jeopardising decentralisation ✅ Rules without compromising the ecosystem ❌ Interoperability is still difficult ❌ Regulators still do not understand the infrastructure complexity; otherwise, they would have joined already ❌ If you do not understand, it does not mean it is not good; learn and keep learning. #verbacommunications #verbacomms #investorrelations #brandcommunication #eventmanagement #financeroadshow #impactinvesting #sustainablefinance #web3 #web3community #digitalassets #rwa

The most exhilarating part of this is, tokenization has not even taken off yet!!! I am really excited to be launching the N51 tokenization platform soon. Currently onboarding the final few shareholders as we speak. DM me if you want to learn more and invest in the most exciting future market of finance.

🚀 Day 3 of Money20/20 has been a blast! We were thrilled to listen in on the 'Crypto Survival Guide' panel discussion by Monica Long, President at Ripple, and moderator Arjun Kharpal, CNBC Correspondent. 📌 Here are our key takeaways: Standalone Custody: Customers continue to prioritize robust, independent custody solutions. Tokenization: Growing interest in tokenizing securities and bonds indicates a need for versatile custody options. Regulation Challenges: Clearer regulations are crucial for industry stability and growth, especially to ensure compliance with the latest standards. Market Catalysts: Increased institutional participation, like Blackrock ETFs and Deutsche Bank's expanded partnership with Bitpanda, drives market momentum. Global Scaling: Unified principles and frameworks help crypto businesses scale globally. KYC/AML & OFAC Screening: Essential compliance measures for maintaining a secure ecosystem. Regulatory Clarity: Common definitions and frameworks, such as the UK's crypto asset framework and MiCA, are very helpful. Effective Regulators: Those implementing regulatory sandboxes, issuing consultation papers, and engaging with the private sector lead the way. As digital asset custodians, these themes are essential to us. We are dedicated to providing our clients with the latest updates and adapting to the evolving needs of the digital asset industry. 🛡️ Want to know how we can keep your assets secure? Reach out to us! 👋 #Money2020 #DigitalAssets #Custody #Regulation #Tokenization #CryptoGrowth