At the recent Sibos 2023, digital assets emerged as a strong theme with many of the biggest financial industry leaders demonstrating interest in exploring blockchain technology.
During the event, Fireblocks CEO Michael Shaulov sat down with TabbFORUM to discuss the top trends emerging in digital assets today.
Watch the video:
A shift towards tokenized assets and stablecoins
One major trend in the industry today is the movement towards tokenized assets as the primary area of exploration.
In the past year, financial institutions have become increasingly active in exploring “crypto rails” and what can be achieved with blockchain technology itself, over cryptocurrencies like Bitcoin. One tokenization use case that the industry is embracing is stablecoins.
“Financial institutions are really interested in tokenizing existing assets,” Michael explained. “The stablecoin and tokenized money use case is emerging. We’re seeing a lot of the big players coming in to [explore] this market.”
Alongside companies like Visa and Worldpay, Paypal recently launched their new on-chain, dollar-denominated stablecoin, PYUSD. The stablecoin is 100% backed by U.S. dollar deposits, demonstrating the flexibility tokenization technology can offer.
Positive regulatory environments are driving the growth of tokenization
In the interview, Michael also detailed how regulations are enabling the growth of tokenization and stablecoins within certain jurisdictions. In those regions, a wide range of use cases are developing, such as stablecoins pinned to securities, bonds, real estate, and carbon credits.
“From a regulatory standpoint, we’re starting to see support in … Singapore, Japan, and Europe,” Michael said. “[These jurisdictions have] created the right frameworks to issue stablecoins and use them as part of regular payment flows.”
All signs point to continual growth in the tokenization area, especially in regions with clear regulations around digital assets.
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