New framework unveiled for adoption of tokenised assets
30 May 2024 Europe
Image: peshkova
DTCC, Clearstream and Euroclear, in collaboration with Boston Consulting Group (BCG), have unveiled a blueprint for driving the acceptance of tokenised assets.
The paper, titled ‘Building the Digital Asset Ecosystem’, outlines six principles to promote the successful adoption of tokenisation and digital asset securities within the industry.
These include legal certainty, regulatory compliance, as well as resilience and security. The guidelines will also explore safeguarding customer assets, connectivity and interoperability, and operational scalability.
The firms argue that while the tokenisation of global illiquid assets is predicted to become a profitable business opportunity, progress on institutional adoption has reached an inflection point as firms continue innovating in silos.
The blueprint therefore includes a set of risk management controls to guide digital markets in the future.
Expanding on the framework, Nadine Chakar, managing director, global head of DTCC Digital Assets, says: “We have a unique opportunity to transform the financial system, but it will require collaboration across a wide cross section of firms to build the infrastructure, standards, controls and governance to underpin digital markets.”
Jens Hachmeister, managing director, head of issuer services and new digital markets at Clearstream, adds: “New technologies bear immense potential to bring financial markets to the next level of efficiency, speed and safety.
“To make this evolution a sustainable one, we need industry-wide collaboration and unified standards to overcome current challenges and drive the seamless integration of digital assets in the global financial ecosystem.”
The paper, titled ‘Building the Digital Asset Ecosystem’, outlines six principles to promote the successful adoption of tokenisation and digital asset securities within the industry.
These include legal certainty, regulatory compliance, as well as resilience and security. The guidelines will also explore safeguarding customer assets, connectivity and interoperability, and operational scalability.
The firms argue that while the tokenisation of global illiquid assets is predicted to become a profitable business opportunity, progress on institutional adoption has reached an inflection point as firms continue innovating in silos.
The blueprint therefore includes a set of risk management controls to guide digital markets in the future.
Expanding on the framework, Nadine Chakar, managing director, global head of DTCC Digital Assets, says: “We have a unique opportunity to transform the financial system, but it will require collaboration across a wide cross section of firms to build the infrastructure, standards, controls and governance to underpin digital markets.”
Jens Hachmeister, managing director, head of issuer services and new digital markets at Clearstream, adds: “New technologies bear immense potential to bring financial markets to the next level of efficiency, speed and safety.
“To make this evolution a sustainable one, we need industry-wide collaboration and unified standards to overcome current challenges and drive the seamless integration of digital assets in the global financial ecosystem.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
