From Investing.com: 2024-06-06 18:10:45

Trading stocks and bonds on blockchains at scale requires a global standard for cross-border activity, allowing assets to move seamlessly across blockchains. Tokenised assets make trading faster, cheaper, and more transparent, but a lack of cohesive global regulation hinders smooth asset movement. Regulatory jurisdictions progress at varying paces, impacting the industry.

Industry executives emphasize that client and compliance requirements vary globally, making a single fixed solution challenging to implement. The report, authored by the Axelar Foundation and Metrika with contributions from Citi, Deutsche Bank, Mastercard, and Northern Trust, stresses the importance of industry-accepted risk assessment approaches for adoption. Standards developed prematurely may limit advancements or become obsolete.

Northern Trust anticipates its digital assets market will grow to 5-10% of its $13 trillion assets under custody by 2030. Currently, $85.12 billion worth of assets, including government securities, stablecoins, and commodities, are tokenised. The industry is evolving, with hopes for increased scalability, transparency, and efficiency in blockchain-based trading.

Read more at Investing.com: Global rules needed to spur blockchain trading of assets, report says By Reuters