Most major financial institutions are now handling tokenised real-world assets, marking a shift from innovation to mainstream adoption, according to a study.
The research, involving firms across the US, Asia, Europe and the Middle East, conducted by Global Digital Finance, a members association and platform for open innovation in digital assets in financial services, found that 91% of these institutions already manage digital or tokenised securities and commodities. Those not yet involved plan to join soon, with 100% of respondents indicating future participation.
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The study highlighted that these institutions are primarily dealing with tokenised corporate debt, alternative funds and sovereign debt.
Nearly 87% of respondents expressed plans to use deposit tokens or Central Bank Digital Currencies (CBDCs). Currently, firms employ various cash leg solutions, with 57% using stablecoins and 66% utilising proprietary coins for on and off-ramp transactions.
The research underscored the transition of real-world asset tokenisation from proof of concept to production.
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Madeleine Boys, head of programmes and innovation at GDF, commented: “Tokenisation is rapidly moving from an innovation to a core component of financial institutions’ digitization strategies.” McKinsey estimates that approximately $120 billion is already tokenized as stablecoins, he added.
