Three leading financial market infrastructures (FMIs) – DTCC, Clearstream, and Euroclear – in collaboration with Boston Consulting Group (BCG), have unveiled a strategic plan to establish a digital asset ecosystem aimed at promoting the adoption of tokenized assets within the industry.
Projected to present a $16 trillion business opportunity by 2030, the tokenization of global illiquid assets has become a focal point in the financial market. However, challenges in institutional adoption persist due to fragmented innovation and limited-scale initiatives that lack a comprehensive ecosystem.
The jointly published report, “Building the Digital Asset Ecosystem,” sets forth six guiding principles designed to facilitate the successful integration of tokenization and digital asset securities, excluding cryptocurrencies.
These principles encompass the importance of legal certainty, regulatory compliance, resilience and security, safeguarding customer assets, connectivity and interoperability, as well as operational scalability.
Nadine Chakar, Managing Director and Global Head of DTCC Digital Assets, emphasized the need for tangible outcomes and value generation in the blockchain space, stating, “While many firms recognize the potential of blockchain to drive cost savings, capital efficiencies, and risk reduction, the industry must pivot towards demonstrating concrete results.”
The objective of these principles is to pave the way for industry collaboration and the establishment of robust standards for the digital asset market. In addition to the guiding principles, the paper introduces a set of risk management controls to assist firms in mitigating risks associated with digital assets, such as asset mismanagement and smart contract governance.
Jens Hachmeister, Managing Director and Head of Issuer Services & New Digital Markets at Clearstream, highlighted the transformative capabilities of new technologies in enhancing efficiency, speed, and security within financial markets.
BCG conducted an in-depth analysis as part of this initiative, which involved a review of approximately 100 regulations and whitepapers across various jurisdictions, as well as over 20 interviews with key market participants and technology vendors.
Philippe Laurensy, Managing Director and Head of Product, Strategy & Innovation at Euroclear, shared insights on the objective to develop innovative solutions that cater to the evolving needs of customers and drive industry advancements. This includes enabling clients to free up balance sheet space through tokenization, thereby unlocking new business opportunities.
