Convergence of TradFi and Digital Assets: The Capital Markets Transformation
Delivered at the Singapore FinTech Festival, the panellists explored topics such as regulatory developments, the integration of blockchain technology into financial markets, and the potential of tokenization.
Key Highlights
- Regulatory Developments: Hon. Caroline Pham, Commissioner, Commodity Futures Trading Commission, highlighted the importance of a balanced and pragmatic approach to regulation. She emphasised that regulation should be data-driven and appropriate for different risk profiles of market participants, moving away from a one-size-fits-all approach. The Commissioner also shared her desire to see more clarity in the U.S. digital asset space and proposed initiatives like a U.S. regulatory sandbox for blockchain pilots.
- Legislative Priorities: While some legislative acts like the Payment Stablecoin Act and FIT21 are pending, there is bipartisan support for stablecoin regulation. Commissioner Pham expressed optimism for more structured and transparent policies in the near future.
- Investment Perspective: Laura Loh, Director, Investment (Blockchain), Temasek, described the company's strategic approach to blockchain investments. Temasek focuses on direct investments in mature blockchain companies, early-stage investments via funds, and building ventures in areas like digital money and assets. She stressed the need for regulatory harmonisation and shared insights on the potential of tokenization to make real-world assets more accessible and efficient.
- Traditional Finance Meets Digital Assets: Mathias Imbach, Co-founder & Group Chief Executive Officer, Sygnum, discussed the global regulatory landscape and emphasised the importance of clarity and consistency. Sygnum Bank, which operates across Europe and Asia, has adapted to evolving regulations, and Imbach stressed the need for traditional finance to learn from blockchain’s efficiency, while also applying robust governance and compliance standards.
- Technological Advancements: The discussion also covered how traditional financial systems can benefit from blockchain technology. Examples included tokenized collateral management and the use of smart contracts to streamline processes like escrow services. The panellists also discussed challenges related to on-chain identity and data privacy.
- Future Outlook: The session concluded with predictions on key developments to watch. Matthias highlighted the impact of U.S. regulatory changes on global adoption, Laurel focused on the increasing involvement of traditional financial institutions in blockchain projects, and Commissioner Pham pointed to the significance of U.S. decisions on stablecoin regulation, which could influence global markets.
Watch Full Session
Speakers:
- Hon. Caroline Pham, Commissioner, Commodity Futures Trading Commission
- Laura Loh, Director, Investment (Blockchain), Temasek
- Mathias Imbach, Co-founder & Group Chief Executive Officer, Sygnum
Moderator:
- Dushyant D Shahrawat, Managing Director, Rosenblatt Securities