Wall Street Moves Towards Tokenization of Assets and Deposits

Wall Street and major global banks are rapidly moving towards the tokenization of assets and bank deposits. The goal of this trend is to facilitate faster money transfers and 24/7 transactions on blockchain infrastructure. Challenges such as liquidity and privacy hinder the widespread adoption of this technology. Recently, two major banks, DBS and Citi, executed a dollar payment between Singapore and the U.S. using tokenized deposits and the SWIFT digital ledger in just a few minutes. This system can reduce the need for companies to hold funds in multiple accounts. Tokenized deposits are recorded as tokens usable in digital payment networks, allowing banks to offer the benefits of fast stablecoin payments. Meanwhile, Nasdaq and the London Stock Exchange Group are developing infrastructure for tokenized stocks and 24-hour markets. Nasdaq has also invested $100 million in Kraken's parent company. The value of tokenized stocks has reached approximately $2.91 billion, with over 3.17 million addresses holding these assets. However, financial institutions still require deep liquidity and transparent ownership rights. The competition on Wall Street is no longer just about tokenization, but about creating assets that can be used at an institutional scale.

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