Harvey L.’s Post

Tokenization lets you digitally represent asset ownership for tangible or intangible assets on a blockchain. Regulators around the world are showing a deeper understanding and comfort with the process and security safeguards. Standard Chartered estimates the tokenization market will reach $30.1 trillion within ten years, with trade finance making up 16% or $4.8 trillion. The segment will be amongst the top three classes of tokenized assets globally. #tradefinance #tokenization #digitalassets #digitalfinance #finance #innovation

Hm 🤔 The Future of Finance seems to be in two minds, or maybe this is a sign of how much has happened in tokenization in the last 6 months. The Future of Finance's website https://lnkd.in/g7w_cUzP is selling tickets to a Tokenization conference in September with the words "Tokenisation of securities and funds is going to happen. How will you and your organisation survive it?" However, while the below chart (which is a hockey stick if I ever saw one 📈 🚀 ) is in their The Digital Asset Tokenisation Guide https://lnkd.in/gFwUDXru - which is dated January 1, 2024 but released this month - the Guide is almost universally skeptical. Example: "a mere 17 financial institutions are engaged in tokenisation at a more than superficial level. Just six banks (Goldman Sachs, Credit Agricole, HSBC, J.P. Morgan, Société Générale and UBS) are mentioned" - so 🤷♀️ just the banks ranked top 15 by assets under management that aren't Chinese 🤔 💭 💡

Exploring Trends and Opportunities in the Structured Finance Market: A Comprehensive Analysis The structured finance market continues to evolve, driven by a combination of regulatory changes, technological advancements, and shifting investor preferences. This market encompasses a wide range of financial instruments, including asset-backed securities (ABS), collateralized debt obligations (CDOs), and mortgage-backed securities (MBS), among others. In recent years, there has been a growing interest in structured finance products due to their potential for diversification, yield enhancement, and risk management. However, the market also faces challenges, such as concerns over transparency, credit risk, and regulatory compliance. Despite these challenges, the structured finance market remains resilient, with ongoing innovation and adaptation to meet the changing needs of investors and issuers alike. Key trends in the market include the rise of alternative data sources for risk assessment, the increasing use of blockchain technology for asset securitization, and the growing importance of environmental, social, and governance (ESG) considerations in investment decision-making. As the market continues to evolve, stakeholders must remain vigilant to emerging risks and opportunities in order to navigate this complex landscape effectively. 𝐂𝐥𝐢𝐜𝐤 𝐇𝐞𝐫𝐞, 𝐓𝐨 𝐆𝐞𝐭 𝐅𝐫𝐞𝐞 𝐒𝐚𝐦𝐩𝐥𝐞 𝐑𝐞𝐩𝐨𝐫𝐭 https://lnkd.in/dkbr3YRX Market Segmentations:   Global Structured Finance Market: #ByCompany Bank of America Merrill Lynch Barclays Citigroup Credit Suisse Deutsche Bank Goldman Sachs HSBC JP Morgan Chase Morgan Stanley UBS Global Structured Finance Market: #ByType Assets Backed Securities (ABS) Collateralized Debt Obligations (CDO) Mortgage-Backed Securities (MBS) Global Structured Finance Market: #ByApplication Large Enterprise Medium Enterprise Stringent Datalytics #StructuredFinance #FinanceTrends #AssetBackedSecurities #Securitization #CreditRisk #InvestmentOpportunities #RegulatoryCompliance #FinancialInnovation #MarketAnalysis #ESGInvesting #RiskManagement

Between the approval of the BTC ETFs and changes to the accounting rules reflected in ASU 2023-08, cryptocurrency is at the forefront of modern finance transformation. We're seeing increasing interest from corporate treasury departments in gaining an understanding of the global use case for cryptocurrency adoption.

*New blog by David Easthope* In 2022, UBS pioneered the world's first digital bond issued by a banking institution, trading and settling on both blockchain-based and traditional platforms. Moreover, the European Investment Bank (EIB) and Société Generale have also embraced experimentation with crypto-native bond issuance. The momentum has continued across 2023, with major players such as Deutsche Bank, Goldman Sachs, HSBC, BNP Paribas, and RBC Capital Markets actively participating in various digital bond initiatives. Goldman, for instance, unveiled its own tokenization platform using the vendor Digital Asset, where it will support reduced bond issuance times. https://lnkd.in/g_62cvr3

This week I got a lot of questions from Corporate Treasurers about the use of #crypto and #btc. I was reflecting on the piece we just released and wanted to share a few observations: 1) Pay attention to how the assets are held and cared for. There are #accounting, #risk, #systems and #tax considerations that are notably different than other asset classes. 2) As digital asset use cases and real-world applications converge, the expressed need for integrated systems and platforms becomes essential. 3) Incorporation of digital asset processes bears various risks, which emphasizes the importance of implementing and adhering to a broad risk management plan. keep an open mind. Go deep. collaborate among each of the competencies (and sometimes silos) in an organization. 4) Don't leave tax and accounting until last (shameless plug). We may raise something really interesting that is tough to change if us bean counters are brought in at the last minute. Have a read of our broader publication on this topic and feel free to reach out to anyone of our team. Kesavan Thuppil Andrew Pinto, MBA, CTP Opek Farodoye Nick Stover PJ Theisen Conor O'Brien Tim Davis Brian Hansen Wendy Henry Kyle Burgess Amy Park Jarick Poulson Kelly Spowage

As traditional and digital finance become increasingly entangled, KPMG’s latest article explores the various ways that financial services firms are seeking to tokenise traditional assets – and how regulatory regimes are evolving to keep pace. Looking across tokenised deposits, CBDCs, tokenised securities, funds and wider asset classes, this article can help support firms in ensuring their capabilities remain fit-for-purpose. #tokenisation, #CBDC, #Tokeniseddeposits, #Tokenisedfunds, #CryptoEFTs https://lnkd.in/eWJgUTa7

As we enter Validus’ 15th year, we are proud to keep growing thanks to our clients with the help of our partners and the dedication of our dynamic Validus Team. We look forward to continue adding value and helping our clients old and new with our macro thoughts, advisory/hedging and investment/financing solutions supported by our industry leading technology. Validus Risk Management #hedging #macro #investing #investements #advisory #advisoryservices #detivatibes #risk #riskmanagement #economy #analysis #tech #techonology #software #finance #banks #trading #capitalmarkets

📊 The Evolution of Exchanges: From Local Utilities to Global Financial Infrastructure Providers 🌐 Exchanges have come a long way in the past 25 years, transitioning from local market utilities to global financial market infrastructure (FMI) providers. This evolution, driven by marketization, internationalization, and digitalization, was significantly influenced by the Paperwork Crisis (PWC) of the 1970s. Originally centered on equity trading, exchanges shifted towards dematerialization and central custody, laying the foundation for today's digital and global financial marketplace. 📈 The transformations brought about by the PWC exposed the inefficiencies of physical securities processing, leading to paperless trading and the establishment of central custodians. Consequently, exchanges have diversified their revenue streams, with trading and clearing, market data and technology services, indices and listings, and post-trade services playing crucial roles in their modern business models. 💻 The development of paperless trading and central custodians post-PWC was essential for efficiently handling growing transaction volumes and enhancing post-trade services. Central custodians now oversee vast data repositories, playing a key role in exchanges' business models regarding data curation and distribution. 🔒 Furthermore, the digital capabilities acquired post-PWC enabled exchanges to expand their derivative offerings, which are now integral to their financial strategies, influencing market behavior and financial flows globally. To manage systemic risks, ensure fair access to market data, and stay competitive, exchanges must focus on enhanced regulatory oversight, increased market transparency, and continued technological innovation. The evolution of exchanges into global FMI providers has positioned them as key players in shaping the stability and efficiency of financial markets today. #Exchanges #FinancialInfrastructure #MarketTransformation #GlobalFinance #Innovation #FinancialMarket

Citigroup Inc. has dropped some big numbers - they estimate that the tokenization market could touch the $5 trillion mark by 2030. It's no surprise then, that Deutsche Bank is exploring an Ethereum-based platform for tokenized fund-based services. As costs of financial products and services increase, legacy financial institutions are recognizing the advantages that decentralized finance (#DeFi) and tokenization bring to the table. After all, it was Anand Rengarajan - Deutsche Bank's APAC and EMEA head of securities services and global head of sales - who said: “𝘐𝘵 (𝘵𝘩𝘦 𝘵𝘰𝘬𝘦𝘯𝘪𝘻𝘢𝘵𝘪𝘰𝘯 𝘱𝘳𝘰𝘫𝘦𝘤𝘵) 𝘸𝘪𝘭𝘭 𝘩𝘦𝘭𝘱 𝘶𝘴 𝘴𝘵𝘢𝘺 𝘳𝘦𝘭𝘦𝘷𝘢𝘯𝘵, 𝘣𝘦𝘤𝘢𝘶𝘴𝘦 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘬𝘪𝘯𝘥 𝘰𝘧 𝘮𝘢𝘳𝘨𝘪𝘯 𝘤𝘰𝘮𝘱𝘳𝘦𝘴𝘴𝘪𝘰𝘯 𝘪𝘮𝘱𝘢𝘤𝘵𝘪𝘯𝘨 𝘵𝘩𝘦 𝘰𝘷𝘦𝘳𝘢𝘭𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘴𝘦𝘳𝘷𝘪𝘤𝘦𝘴 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘺, 𝘵𝘩𝘦 𝘰𝘯𝘭𝘺 𝘸𝘢𝘺 𝘰𝘯𝘦 𝘤𝘢𝘯 𝘴𝘶𝘳𝘷𝘪𝘷𝘦 𝘪𝘴 𝘣𝘺 𝘪𝘯𝘯𝘰𝘷𝘢𝘵𝘪𝘯𝘨.” Know more about financial asset tokenization, and how fintechs and financial institutions can make the most of it, here 👇