Future of Finance Event Books

Explore the rise of Digital Assets in asset management. Learn how Digital Assets can revolutionize costs and trust in the industry today.

Are digital asset exchanges offering peer-to-peer trading? The cryptocurrency markets have proved that peer-to-peer trading is technologically possible. This is not surprising. The original vision of blockchain technology was to replace trust in centralised intermediaries with trust in decentralised technology. The collapse of the centralised FTX exchange reinforced, rather than undermined, the validity of that claim. Which places centralised digital asset exchanges hosting t

Are institutional investors looking for a higher level of regulatory certainty before they invest in digital assets? Institutional investors care primarily about their investments, the speed with which they can be executed, the transparency of information about them and how safely they are kept. So, for them, a sound regulatory environment is a requirement that must be met before they will invest. Are institutional investors looking for a higher level of regulatory certainty

Are tokenisers focusing on privately managed assets because they are the easy option? This was not the view of the audience. Only minorities thought that tokenising privately managed assets is an easier option than attacking the public markets, and hardly anybody thought issuers are more readily found there. Broader distribution of privately managed asset classes, making privately managed assets more tradeable, and building an infrastructure to support them, are the prioritie

Are traditional exchanges doing nothing about tokenisation? Anecdotal evidence suggests all major exchanges have large teams exploring digital assets, some of which have moved beyond Proofs of Concept (PoCs) and pilot tests and are now close to launching products, but little of their work has seeped into the public domain. This is less because of intellectual property considerations, or lack of buy-in by senior management, than the fact exchanges tend to be regulated and ofte

Are specialist intermediaries such as market-makers necessary to generate liquidity in tokenised asset markets? Traditional markets prove that liquidity does not arise naturally from the interaction of issuers and investors, and cannot be sustained by their activities either, but must instead be created by market-makers and sell- and buy-side firms using collateralised credit and asset borrowings to take positions and increase the value of their trades (see Chart 1). So liqui

Digital asset custody: What can possibly go wrong?

How do the risks of digital asset custody differ from the risks of traditional custody? Digital assets are not the same as conventional financial assets, so custodians must master familiar risks in unfamiliar guises, and entirely new risks. The fact that ownership of a digital asset depends on possession of private keys is an obvious difference from registered securities or funds. The keys are routinely sharded into multiple parts which must not only be reassembled as needed

How is the digital asset custody industry evolving? The origins of digital asset custody lie in the initial cryptocurrency boom of 2015-2017. Retail investors needed digital wallets to hold the private keys to their coins, and the cryptocurrency exchanges provided them. Independent digital asset custodians, and vendors of independent digital asset custody technologies, proliferated in 2017 and especially 2018, as the first cryptocurrency bubble inflated and then deflated.  At

Custodians have been obliged since 2019 to check that holders of cryptocurrencies and Stablecoins are not money launderers, terrorists or sanctions evaders. (1)  What impact have those obligations had on the day-to-day practice of digital asset custodians?  Both traditional custodian banks and specialist digital asset custodians have recognised the need to comply with the Financial Action Task Force (FATF) obligations to run Anti Money Laundering (AML), Countering the Financi

Why do digital asset custodians exist at all when blockchain was invented to eliminate the need for trusted intermediaries? Issuers and investors, and intermediaries such as asset managers and brokers, are agreed that custodians are essential to secure mainstream adoption of digital assets. Such universal agreement reflects the fact that custodians reassure investors, asset managers and brokers that their assets are safe, and their privacy and confidentiality will be respecte

What are the incentives for private debt and equity issuers to tokenise their offerings? Securities token offerings (STOs) are suited to companies that are too big for crowd-funding platforms and too small for the conventional capital markets. So it is not surprising that the audience thought private debt and equity issuers are not just the obvious beneficiaries of tokenisation (Chart 1) but the issuers with the greatest appetite to tokenise securities (Chart 2) and the issue

Discover how tokenisation is revolutionising asset management. Learn how tokenisation helps distribute products to new investors effectively.

What tokenisation will enable the financial markets to deliver tomorrow which they cannot provide today

Why the benefits of tokenisation depend on the issuance of “native” rather than “asset-backed” (or "digital twin”) digital assets

How a common platform or unified ledger could unleash network effects in the token markets

Does tokenisation have a scaling problem today and, if so, why?  Some token platforms are growing. But tokenisation as a whole is struggling to scale. This is largely because the business case for adoption is not yet clear. However, the Initial Coin Offering (ICO) bubble of 2017, the cryptocurrency crisis of 2022 and the Proofs of Concept and Pilot Tests of the early explorations of blockchain by regulated institutions were important staging posts and are in the past. The ind

What are the costs of lack of digital money on chain? The absence of on-chain money to settle the cash leg of transactions on blockchains and pay entitlements has many negative effects on the security and fund token markets. Ultimately, every tokenisation use-case depends on the availability of on-chain cash to realise its potential value to users. After all, a large part of the appeal of blockchain is its ability to capture transactions, settlements and transaction records o

Are vested interests at work? Regulated financial institutions have adopted a cautious approach to tokenisation. But the main reason is not protection of existing revenue streams. It is a concern that the existing structure of the capital markets reflects the lessons of experience, and that it would be foolish to jettison that knowledge and the safeguards it erected in pursuit of the cost savings afforded by disintermediation. That said, there are cases where incumbents resis

Just four countries have issued a central bank digital currency (CBDC). But the CBDC Tracker suggests that interest in CBDCs is far from moribund. In September 2024 26 central banks had a CBDC at the pilot stage and another 30 at the proof-of-concept stage. A further 103 are researching the idea. The Bank for International Settlements (BIS) website lists 20 CBDC research projects in which central banks have taken part since 2016. Just seven central banks have cancelled their

It is universally agreed that lack of fiat currency on blockchains is an obstacle to the growth of digital assets. In cryptocurrencies, market forces solved this problem with the invention of the Stablecoin. Though trivial in value (US$172 billion total market capitalisation in September 2024) by comparison with the value of fiat currencies outstanding (US$215 trillion), Stablecoins have in the year to mid-September 2024 been used by about 180 million active addresses in US$4

The basic choice in digital asset infrastructure projects is between building linkages between systems or building common platforms. The difficulty the digital money and assets industries have encountered already in developing interoperability between platforms is a reminder that links require widespread if not universal agreement between market participants and introduce additional complexities and costs. Common platforms, on the other hand, can in theory achieve success thr

In theory, blockchain is an ideal technology for driving interoperability in financial markets because it puts digital money and digital assets on a single ledger shared with all parties at all times, ending the cost and complexity of coordinating multiple, siloed ledgers through complicated data exchanges between multiple intermediaries, each using proprietary systems, and it operates 24/7.  However, blockchains as they exist today do not conform to this promise. There are d

Tokenised assets issued on to blockchain networks need cash on-chain to create liquidity and drive network effects. Stablecoins and (to a lesser extent) e-money have fulfilled this role so far. Like Stablecoins and e-money, tokenised deposits offer the benefits of instant payment, atomic settlement and programmability via smart contracts.  But tokenised deposits have other advantages. They are a form of digital money underpinned by regulated banks. They preserve the "singlene

Payment services have made significant progress. Since 2008, when the Faster Payments service was introduced in the United Kingdom, instant payment around-the-clock has become a global norm. It is delivered not by blockchain technology but through domestic payments market infrastructures. In fact, payments infrastructures now process higher volumes of low value transactions and inter-bank payments more securely than ever before.  Other innovations are having an impact. Open B

Bitcoin has demonstrably failed to deliver on its initial promises. Although more than 15,000 businesses around the world accept Bitcoin as payment, and both payment service providers and credit card companies are making it easier to move between Bitcoin and fiat currency, it is still extremely hard to spend Bitcoin in a shop or restaurant.  This is not surprising, since the day-to-day value of Bitcoin is so volatile that consumers are reluctant to use it and merchants to acc

Explore Deutsche Börse's integrated market infrastructure for institutional investors in digital assets. Discover how this integrated market infrastructure is reshaping finance.

Discover how Obligate is transforming capital markets with blockchain technology. Learn about Obligate's innovative approach to capital markets today.

Discover how InvestaX, a blockchain-based platform, revolutionizes financial markets with energy and passion. Explore InvestaX's journey today!

Explore how open ecosystems drive Token Market Growth with BX Digital's innovative strategies. Discover the future of Token Market Growth today!

Explore how open ecosystems drive Token Market Growth with BX Digital's innovative strategies. Discover the future of Token Market Growth today!

Discover the transformative power of Web3 in financial services! Explore how blockchain and crypto are reshaping finance in this insightful book review on Web3.

Explore how traditional stock exchanges are missing the tokenisation trend. Discover why stock exchanges might be misjudging the future.

Discover how Stock Exchanges can adapt to the digital age. Learn about the evolving landscape and opportunities for Stock Exchanges now.

Traditional exchanges risk missing the point about tokenisation. Discover how tokenisation impacts the future of exchanges and their relevance.

[OCT 2024] To download the Future of Finance ‘Digital Money – How the Ways we Pay and Get Paid are Going to Change’, press the Download button next to the printer icon below. Digital Money – How the Ways We Pay and Get Paid are Going to Change Download If you are unable to download the PDF, please email Wendy Gallagher wendy.gallagher@futureoffinance.biz and she will send you a copy.

Explore how 'Traditional Finance' is being transformed by digital assets in this insightful book review. Discover how 'Traditional Finance' evolves.

Explore the unexpected rise of tokenisation in Japan and discover how this trend is reshaping the financial landscape. Tokenisation in Japan is thriving!

Discover how reference data fuels the tokenised future. Explore the tokenised future's vast potential and learn how interoperability is key.

Explore how Swiss DLT Law enhances Native Tokenisation success for startups. Discover Native Tokenisation's benefits and practical applications.

Discover why tokenisation isn't working and how a public initiative can drive its success. Explore the potential of tokenisation today.

Unlocking Value on Balance Sheets: Discover how tokenisation can unlock value on balance sheets for non-financial firms and drive financial innovation.

Explore why tokenisation is key to the future of finance and why incumbents are doomed. Discover insights into tokenisation's impact now.

Explore the impact of the "safeguarding" rule on digital asset custody. Learn how digital asset custody is evolving under new regulations.

Explore the uncertain future of SAB 121 and its impact on digital asset custody. Is SAB 121 dead or alive? Discover the latest insights now.

Discover insights on the Custody Market and its growth in digital asset custody services. Explore the Custody Market trends and challenges today!

Explore why the United States lags in digital assets regulation and how this impacts digital asset custodians. Discover the global regulatory landscape.

Discover why bank regulators are crucial in the U.S. banking landscape. Learn how bank regulators influence digital asset custody today.

Explore the evolution of the German Token Market, from regulatory reforms to the rise of tokenised securities. Dive into the German Token Market now!

Explore the evolving Custody Market as banks cautiously enter digital asset custody. Discover if the Custody Market role is truly expanding.