Tokenisation: Propelling innovation at speed

This is the second article in our series exploring the vast opportunities created by tokenisation enabled by distributed ledger technology.

Our first article considered the potential of tokenisation to democratise access to investment opportunities. This article explores how tokenisation can accelerate broader product innovation in financial markets, benefiting both institutional and everyday investors.

In 1989, a British scientist wrote a paper proposing a solution to meet demand for automated information sharing between scientists around the world. Hardly sounds like the most exciting topic, does it? But this paper, written by Tim Berners-Lee, which led to the invention of the World Wide Web, was crucial in igniting an online revolution amongst the public that continues to accelerate today – the internet. Back then, it was probably hard to imagine that the internet and the web would collectively leave such an indelible mark on everyone’s lives to come.

Since then, we’ve seen the internet evolve, and the value created by the internet has scaled up exponentially as we moved from Web 1.0 to Web 2.0. Users shifted from only being able to read static information on webpages to being able to publish content, interact and build relationships across a geographically-distributed community. This saw adoption take off, evidenced by the increase in social network users from 2.86 billion users in 2017 to a projected 4.41 billion in 2025. And the internet’s next paradigm is coming. Powered by DLT and taking inspiration from blockchain protocols, the decentralised manner in which Web 3.0 operates will have far-reaching implications across industries.

There is much more to be discovered on DLT applications for financial services. We believe that DLT and tokenisation will reshape financial markets by creating completely new asset classes, spurring product innovation and bringing customised solutions not just to large financial institutions but everyday investors.

Read more and click on the article below, as we explore in-depth how tokenisation is being propelled to the next level.