Asia is leading a major change in capital markets by moving from traditional to blockchain-based tokens.
This change is happening fast in the Asia-Pacific region. It is turning ownership rights into digital tokens.
This year, we’ve seen more trading of stocks and bonds on the blockchain. This shows a big move from testing to regular use.
Digital tokens on a blockchain represent traditional financial assets, streamlining transactions and ownership transfers for tokenized securities.
Tokenization makes trading assets easy and quick. It also makes markets work better and more openly. It turns hard-to-sell assets into ones that are easier to sell.
This could greatly increase how much money moves around the world. By 2030, the value of these digital assets could reach $11.3 trillion.
Hong Kong and Singapore are making rules clearer for everyone. They are treating digital and traditional securities the same way.
This idea is starting to be accepted worldwide, even though the U.S. and China are cautious.
Navigating the Digital Frontier
The Financial Stability Board is looking into how tokenization affects the economy.
They will share their findings soon. So far, $4 billion in digital bonds have been sold in places like Hong Kong and Singapore.
This shows that laws and rules can support digital bonds.
The U.S. is also seeing more digital U.S. Treasury bonds. This could grow if the rules become clearer. Digital private credit markets are growing too, especially in the U.S.
Banks and other financial groups need to build safe systems for these digital assets.
Tokenization helps follow rules better by keeping clear records that can’t be changed.
ASIFMA and its partners have made a plan for how to deal with digital securities. This plan helps banks, businesses, and rule-makers build a strong system for digital assets.
The world is still deciding how to handle these digital securities. Will the U.S. and China join Hong Kong and Singapore in their approach?
In Short, bringing digital securities into the world’s financial system is a big step. It could make accessing, moving, and seeing money easier and clearer.