Project Guardian: Raising Money Through Tokenized Debt Securities

 

In this panel discussion, industry experts from Euroclear, S&P Global, and UBS discuss the progress and future of tokenization in the fixed income markets. They highlight the recently published Guardian Fixed Income Framework as an industry guide for implementing tokenization in debt capital markets.

Key highlights 

Laurens Schepens, Lead UBS Tokenize & Digital Assets APAC, UBS: 
  • To see full commercialisation in the space, we have to do real transactions because my view of tokenization is always technology as well as legal frameworks. And only when combined, you will start to learn where the gaps are. We are beyond trying out the technology. 
  • We need standards and certifications because otherwise this is not going to scale. It's going to be too much incremental effort to check each individual asset, which we don't do in the traditional side because we have well regulated institutions.

Andrew O'Neill, Managing Director, Analytical Lead on Digital Assets, S&P Global:
  • Most digital bonds have been on private blockchains on more of a proof of concept basis which is great for demonstrating the technology. It can support some transactions between clients of the same bank. It's not so great for building a market. So how does that then evolve? 
  • As private blockchains develop, they come with questions and risks.
  • Not all public chains are created equal. Some have been around a long time, have demonstrated a certain degree of resilience, have a certain amount of economic security built into their consensus mechanism. Even though you have networks that are theoretically decentralised, there are still dependencies to be aware of.

Alexander Sulaimani, Director, Business Development, APAC, Euroclear
  • On transparency: In today's day and age when we can order something on Amazon and know where it is anywhere in the world within a few minutes and when you don't have that same transparency for securities that can be worth hundreds of millions, billions, it's a bit strange.
  • He noted that the space is still in the early days of regulation. 
  • Proving the value of the technology is one thing but we also need to have regulatory clarity.


Conclusion:
While challenges persist, the collective expertise and dedication within the industry are paving the way for a more transparent, efficient, and inclusive financial ecosystem.

 

Watch Full Session

 

 

Speakers:

  • Alexander Sulaimani, Director, Business Development, APAC, Euroclear
  • Andrew O'Neill, Managing Director, Analytical Lead on Digital Assets, S&P Global
  • Laurens Schepens, Lead UBS Tokenize & Digital Assets APAC, UBS

Moderator:

  • Allison Parent, Executive Director, Global Financial Markets Association

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