The big prize for financiers is the tokenization of financial securities and funds. At the core of the idea is standardization. Time and money can be saved by stripping out financial intermediaries who all work on different versions of the same data in their own silos, meaning transactions between them must all be checked and verified.
Tokenisation could also make a big difference to markets such as private debt and structured finance, according to Ralf Kubli, board member of the Casper Association in Switzerland. Information on cash flows and payment obligations could be coded to public tokens, potentially increasing liquidity and opening up access to many more investors. In this way, tokenisation would blur the line that separates private and public assets. That means it is potentially more than an efficiency tool for traditional asset managers. Should it go mainstream, there will be an opportunity to take the fight to the alternatives industry.