Tokenisation Financial News

As major US corporations embrace blockchain, calls for clear regulations are growing louder, a Coinbase survey conducted on Fortune 500 (F500) executives revealed.

Binance Research report revealed that the market value of on-chain real-world assets (RWAs) has surged past $12 billion. In 2022, Boston Consulting Group (BCG) predicted that the tokenized asset market could skyrocket to an astounding $16 trillion by 2030. Over the past few months, RWA tokens have been steadily gaining momentum, signaling a major shift in market sentiment. Real World Asset tokenization or RWA Tokenization, a groundbreaking use case of blockchain technology, might still be in its early phase, but its potential is immense. What is RWA and why is the world becoming increasingly bullish on RWAs, and where do we stand in this rapidly evolving landscape? Does it have any relevance in the Indian context? This article will answer some of these questions.

Ratings agency Moody’s has announced it will be involved in the Monetary Authority of Singapore (MAS) backed project Guardian by providing risk management services for tokenized fixed income products.

Banking giant HSBC is now allowing retail investors in Hong Kong to buy real gold through digital tokens.

It’s the final day of the World Economic Forum (WEF) held in Davos-Klosters between 14-19 January 2024 – a global event bringing together the most influential players in politics and business to discuss the upcoming trends in business. 

The Tokenbridge platform has several features the company believes are set to “remake the investment landscape”.

29% of asset managers said they were set to offer tokenised funds within the next one to five years, while over half said they would do so in the next decade.

Funds can now implement a baseline approach to tokenisation, providing they meet certain characteristics, such as comprising of mainstream investment assets and still providing valuations and settlement through the same processes and timeframes.

This proof of concept, developed in collaboration with WisdomTree, is one of several industry pilots that are taking place under Project Guardian.

Visa, the global leader in digital payments, unveiled a comprehensive report detailing how tokenisation is driving India's digital economy. The report, «Enabling the Digital Shift: Tokenisation in India’s Economic Landscape», marks one year since the effective date of the RBI’s mandate on tokenisation for e-commerce transactions. 

The FCA joins MAS, Singapore’s central bank, the Financial Services Agency of Japan (FSA), and the Swiss Financial Market Supervisory Authority (Finma) as part of the project.The initiative is an extension to MAS’ Project Guardian, in which the central bank collaborated with 15 financial institutions to carry out industry pilots on asset tokenisation in fixed income, foreign exchange, and asset management products. While the pilots demonstrated the potential to reap significant market and transaction efficiencies from the use of tokenisation, scale challenges entail closer cross-border collaboration among policymakers and regulators.The project aims to share knowledge and examine the benefits, regulatory challenges, and commercial use cases of asset and fund tokenisation.Leong Sing Chiong, deputy managing director, MAS, states: “MAS’ partnership with FSA, FCA and Finma shows a strong desire among policymakers to deepen our understanding of the opportunities and risks arising from digital asset innovation.

Crypto usually dominates headlines as a speculative trading asset. Fortunes are won and lost in these oft-unregulated and volatile markets.

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Sir Cunliffe highlighted that although central bankers are tasked with "forecasting the economic future," it is not "an easy task." Further, when attempting to maintain financial stability, central banks must be "forward looking" because as Sir Cunliffe explained, "while we cannot be certain how new technologies and social and economic trends will play out, we need to have though through in advance how the risks might need to be managed and, where the likelihood of major change is high, have the regulatory frameworks and powers in place." 

So far 2023 has been characterized by breakout narratives - from the AI boom to the hype around Chinese crypto. Could DeFi Tokenization of Real World Assets (RWA) be the next big thing?

The jobs, both at HSBC's Global Private Banking and Wealth (GPBW) business and both based in the UK, are currently being advertised on the bank's website. The global product manager for digital assets will be responsible for the smooth running of all activities via the creation, optimisation and running of governance and policy. "Because digital assets is a new topic and strategic & risk appetite considerations are evolving quickly, the product manager for digital assets will be required to build strategic frameworks and policies to help drive complex business, project and governance decisions," says the ad. Meanwhile, the product director, tokenisation will focused on asset tokenisation use cases, "required to make complex business and project decisions, that contribute to a high value, strategic initiative". Applications for both jobs close on 13 February.

The jobs, both at HSBC's Global Private Banking and Wealth (GPBW) business and both based in the UK, are currently being advertised on the bank's website.The global product manager for digital assets will be responsible for the smooth running of all activities via the creation, optimisation and running of governance and policy."Because digital assets is a new topic and strategic & risk appetite considerations are evolving quickly, the product manager for digital assets will be required to build strategic frameworks and policies to help drive complex business, project and governance decisions," says the ad.Meanwhile, the product director, tokenisation will focused on asset tokenisation use cases, "required to make complex business and project decisions, that contribute to a high value, strategic initiative".Applications for both jobs close on 13 February.

Bryony Widdup is a finance and fintech partner at law firm Hogan Lovells

When it comes to US custodian banks, they don’t get much bigger than State Street.

State Street’s digital assets arm has “no plans” to trade crypto any time soon, but is instead focusing the vast majority of its efforts on bringing existing trades onto the blockchain, according to the unit’s global chief Nadine Chakar.

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.