Tokenisation is often touted to unlock vast potential, particularly in markets plagued by inefficiency and illiquidity. There is a market consensus forming that investors are drawn to adopt tokenised assets due to reduced transaction costs and enhanced liquidity.
For institutions on the supply side, the allure seems to lie in accessing new capital, boosting liquidity, and streamlining operational efficiency. However, we believe the true transformative power of tokenisation is far greater. We see the next three
years as a critical junction for tokenisation with new asset classes being rapidly tokenised, and trade finance assets taking a center stage as a new asset class.
Industry development is reaching a new level where public utility will be rewarded more than siloed efforts. To provide access to new asset classes, banks have a critical role to play in providing trust and bridging existing traditional financial markets with new, more open, token-enabled market infrastructure. Holding a position of trust is foundational to validate issuer and investor identity, run KYC/AML checks and grant credentials to participate in this new interoperable
financial ecosystem.
Source: Standard Chatered