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Beyond Asset Tokenisation

We partnered with HSBC to reflect on some key drivers, considerations and opportunities which may arise on the journey through the next evolution of asset servicing. Included are some key trends that we believe are meaningful to institutional and wealth investment communities.

We are living through an era of deep digital transformation, digital asset innovation and climate crisis.

The need to reimagine the way we live, and work is paramount to remaining effective and efficient in a future state with only one constant – change.

Macro-economic, digital, and environmental factors will continue to have profound impacts on the asset servicing landscape. As the financial markets ecosystem evolves to embrace new technologies and partnerships, firms must innovate in pursuit of new value propositions for our clients and partners.

In this paper, we partnered with HSBC to reflect on some key drivers, considerations and opportunities which may arise from the next evolution of asset servicing – looking beyond enabling capabilities such as tokenisation, to new horizons for institutional grade products and solutions across the investment community.

We unwrap some of the key trends in the realms of ESG, Digital Assets, Voluntary Carbon Markets and contemplate the path forward in the nurturing of digital ecosystems, how that may influence the development and delivery of new products across the asset class spectrum.

Additionally, we outline what we believe to be some of the key ingredients and resources for participants – investors, services providers - to navigate that digital journey ahead.

Key among those are:

  1. DLT technologies have the power to transform value chains and processes as we know them, providing transparency and immutability at the core. Enabling new generations of products and asset classes.
  2. Firms cannot any longer expect to keep performing the same roles without evolving to new client needs, new entrants and disruptors will innovate and compete.
  3. The ESG data and product landscape is complex and will present challenges as well as opportunities for many in the coming years.
  4. The emergence and tuning of regulatory frameworks across the globe will have a strong influence over the maturity of the digital landscape as we know it.
  5. Partnerships and collaborations are powerful, network effects and scale can only truly be achieved in interconnected ecosystems that transcend traditional barriers and silos.

Download the paper to learn more.

 

Dan Sleep portrait

Dan Sleep

Digital Assets and Financial Markets Specialist, Asia Pacific
Dan Sleep is a Digital Assets and Financial Markets Specialist, Asia Pacific at Northern Trust. He is responsible for assessing the impact of regulatory and market infrastructure change to Northern Trust’s operating model and identifying innovative operating structures.

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