(Reuters) – A report published on Thursday suggests that trading stocks and bonds on blockchains at scale will remain a dream. This is until a global standard for cross-border activity is established to allow assets to move seamlessly across blockchains.
Tokenised assets, representing the underlying assets, are exchanged on distributed ledger technology used for cryptocurrencies. Banks anticipate tokenised asset trading to enhance trading speed, cost-effectiveness, and transparency.
However, a lack of cohesive global regulation is keeping assets from moving smoothly across different blockchains. Industry executives at an event in Amsterdam this week said progress on tokenising assets was moving slowly, and take-up so far is limited.
Georgios Vlachos, co-founder of blockchain interoperability firm Axelar, emphasized the global variation in client and compliance requirements. He co-authored the report addressing this issue.
“At the current state of things, different regulatory jurisdictions are progressing at different pace and have different focus areas,” Vlachos said.
The report by Deutsche Bank stressed the importance of industry-accepted risk assessment approaches for adoption facilitation.
By 2030, Northern Trust anticipates its digital assets market to reach 5% to 10% of its $13 trillion custody assets.
Additionally, global blockchain rules can facilitate cross-border transactions and interoperability between different blockchain networks.
Moreover, standardized rules for blockchain trading can enhance transparency and accountability in the digital asset market, ensuring fair and equitable participation for all stakeholders.
Overall, the establishment of global blockchain rules is crucial for unlocking the full potential of blockchain technology and driving innovation in asset trading on a global scale.
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