Virtual Round Table Discussion – How will Tokenisation Transform Financial Markets?
- Future of Finance
- Nov 27, 2024
- 3 min read
Updated: Jul 23
What is the event about?
What will catalyse the growth of the tokenised securities and fund markets? Lists of obstacles to growth – lack of fiat currency on blockchains and regulatory uncertainty chief among them – are not hard to find. But the purpose of this Round Table is not to rehearse what we know already. It is to remake the case for tokenisation by identifying the problems that tokenisation solves, and the benefits tokenisation confers, asset class by asset class, and explore what issuers and exchanges and their buy-side customers can do to make it happen.
Tokenisation has the potential to transform financial markets. Where do we see this already translating into practice? What are the benefits for the investors and where do we see investor demand? Which ecosystems and players are emerging? Which contributions can digital exchanges make for issuers, banks, asset managers and investors?
This is an ‘invitation only’ event and attendees will be authorised based on the criteria below.
Why attend?
Tokenisation has the power to transform the securities and funds markets, and it is beginning to happen. This Round Table will help you prepare for the radical changes that coming. You will hear from thought leaders – global banks, issuers and asset managers. We will go beyond the surface of “efficiency and opportunity”. The discussion is interactive so you can ask questions and contribute to the discussion. The purpose of the discussion is to provide ideas on how to prepare your business and connect and grow your (virtual) digital asset network.
Who should attend?
Corporate issuers, fund issuers, private equity managers, private debt managers, issuers of structured products, private banks, wealth managers and providers of tokenisation platforms and those with an interest in shaping the future of the financial markets.
When is it happening?
At 2pm London time on 27th November
What topics will be discussed?
On Tokenisation:
The 2024 McKinsey Global Private Markets Review values private equity at US$7.95 trillion and private debt at US$1.7 trillion. How would you persuade issuers to tokenise these securities and list them on exchanges?
Are real-world assets (commodities, privately owned real estate and infrastructure, and other real-world income streams such as royalties) more likely than private equity and debt to be tokenised and traded on exchanges at scale?
The public global equity (US$115 trillion in 2023 according to SIFMA) and debt (US$140.7 trillion) markets are tempting in terms of size but are they too efficient (in terms of issuance, trading and servicing costs) to benefit from tokenisation?
Does the recent issue by Berlin Hypo of a (mortgage-backed) Pfandbrief on a blockchain have any significance outside Germany?
Are the global mutual fund markets (US$70.2 trillion in Q2 2024 according to the Investment Company Institute) a realistic target for tokenisation?
Are tokenised money market mutual funds a special case?
Cryptocurrency Exchange Traded Funds (ETFs) are now established. Is there a case for tokenising ETFs?
Structured products are popular and high volume and traded on exchanges as well as OTC already, especially in German-speaking Europe. What can tokenisation do for them?
Is it possible (especially in terms of regulation) for token issuers to sell tokenised assets directly to retail investors (mimicking the success of the cryptocurrency markets)?
Tokenisation is making progress in securities financing (HQLAx, Broadridge repo, JP Morgan repo). Do exchanges have any role to play in tokenised securities financing?
On the “buyside”
What would persuade private banks and wealth managers to offer tokenised securities and funds to retail investors?
Is it clear in each one of these cases what problem tokenisation solves and/or what benefit it confers? Due to efficiency reasons? To expand the investment universe with new investment products? To access unbanked client segments?
What role would banks and exchanges play if tokenised assets were offered directly to retail investors?
On Exchanges
What can exchanges do to make tokenisation happen and especially to generate network effects to help token markets grow rapidly?
Panellist:
Moderated by Dominic Hobson Co-Founder at Future of Finance
