The Future of Custody in a Tokenised World
Julian Sawyer of Zodia Custody presents a comprehensive report into the rapid expansion of Tokenisation and how it is driving demand for secure custody solutions, especially for real-world assets. This shift brings both challenges and opportunities in regulation and innovation.
Tokenisation has become the buzzword of the moment in both traditional finance and digital asset circles. While cryptocurrencies have proven their staying power, with a projected market cap of $4.5 trillion by 2028, estimates of market growth for tokenised assets are projected to outgrow that market substantially. USD stablecoins currently make up the bulk of tokenised assets on public blockchains but new growth is also being driven by demand for tokenisation of debt instruments and real estate funds.
As the tokenisation ecosystem emerges and develops to incorporate real-world assets, new players are entering the market and the range of potential new market participants who were not previously engaged in digital assets is opening up.
In this report, Zodia takes a look at some of the challenges, as well as the new opportunities, surrounding custody of digital assets in a tokenised future. Encompassing a range of views from industry experts including asset managers; market makers; issuance platforms; and policy, regulatory and legal experts, they examine what the custody landscape looks like now, how it may shift and what are the exciting opportunities that tokenisation may represent in the future.
What still needs to be built for more widespread adoption to take place? What is lacking from a regulatory and legal standpoint and what do traditional finance players need from custody providers as tokenisation takes off?
Combined with Zodia’s mapping of the tokenisation landscape today, this report provides fresh insights into how tokenisation will evolve and what the future may bring. What is clear is that, while the custodian’s role is shifting and services will require ongoing innovation to keep up with the pace of change, providing safe, secure custody for digital assets will continue to be at the heart of the financial and capital markets of the future.
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