Bonds and gold are top tokenisation targets
you can have is the straightforward IOU and they yield as well. That’s the one that the banks and institutions will push the fastest,” Jassal said. BCB Group Co-founder and Chief Executive Oliver Tonkin agreed and said he saw another key asset as ripe for tokenisation. “I would add gold to that because we have seen a few projects, and we could see a lot more, because it is a hedge. And there are lots of strategies around gold and bitcoin being combined,” Tonkin said.
Another area in mainstream investment highly suitable for
tokenisation is money market funds, according to Tonkin. “It’s a massive market and you are beginning to see projects that are credible,” he said, adding that links could be made between money market funds and stablecoin allowing investors to flip quickly in and out of funds to access yield. The potential for tokenisation of mainstream assets marks a major evolution from just a few years previously, Tonkin said: “We’ve been around for about eight years and about five or six years ago, people were coming to us wanting support for often crazy ideas, stuff like tokenised fast cars, art or stamps. It was just unnecessary. What we
Oliver Tonkin and Deepak Jassal
Bonds and gold are set to lead the way in large scale tokenisation, according to panellists at the Digital Commonwealth Summit. A session on real world assets and tokenisation examined their prospects and posed panellists the question:
which are the next assets that will be tokenised at scale? Panellist Deepak Jassal, Partner at corporate advisory 01 Capital, identified fixed income markets as highly promising. “I think the bond market is the safest. One of the simplest assets
are seeing now is an evolution away from those stupid ideas and to projects with genuinely useful value-added.”
And I am optimistic that there could be coordination because mutual recognition would be beneficial to the EU, the US and the UK.” Framework is needed to unite stablecoin regulation
The fragmenting regulatory landscape for stablecoin should be brought together under a system of mutual recognition between countries, attendees at the Digital Commonwealth Summit in London were told. Speaking on a panel discussing stablecoin standards, Katie Harries, Director, International Policy at Coinbase, said that despite diverging regulation between leading economies, she believed some kind of reciprocity was still possible. “Every jurisdiction is fundamentally doing different things, but we all recognise it is really important that there is some coordination,” she said. “The best outcome would be some sort of equivalence framework or mutual recognition framework that would allow
The summit panel discussed the future of stablecoin versus Central Bank Digital Currencies (CBDCs) with speakers unanimous in the view that CBDCs had been overshadowed by the growing interest in stablecoins. The US has ruled out issuing Federal Reserve digital currency, but in principle the idea is still alive in Europe and the UK, with many other countries also experimenting with CBDCs. The Bank of England has launched a Digital Pound Lab and is consulting on next steps. Against this background in the US and the UK, Ollie Carew, Director FinTech Consulting at EY, said Europe was further ahead. “I think that might be an interesting place to keep an eye on because the digital EUR has more political legs,” he said.
stablecoins denominated in one currency to be traded in another.
Katie Harries
03
Made with FlippingBook - Online magazine maker