Creating an Interoperable Infrastructure for Digital Assets
Delivered at the Singapore FinTech Festival, this panel explored the future of digital assets, emphasising the critical need for interoperable infrastructure for a more connected blockchain ecosystem.
Key Highlights
- Importance of Interoperability: Georgios Vlachos, Co-founder of Axelar Protocol & Director, Axelar Foundation, explained the necessity of interoperability due to the presence of multiple blockchains, which are difficult for users to navigate. He emphasised the goal of simplifying user experiences by abstracting away the complexities of different chains, making the technology accessible to all.
- Technical Standards and Collaboration: Daniela Barbosa, General Manager, Decentralized Technologies, Linux Foundation & Executive Director, LF Decentralized Trust, discussed the need for universal technical standards, such as cross-chain messaging, token standards, and atomic swaps. She highlighted the importance of collaborative efforts among developers and institutions, even among competitors, to drive these standards forward.
- Asset Classes for Tokenisation: Rehan Ahmed, Chief Executive Officer, Marketnode, shared insights on which asset classes are best suited for digitisation. He noted that high-frequency, high-velocity asset classes like credit, funds, and structured products are key areas of focus. He also underscored the operational challenges of integrating digital assets with existing traditional finance infrastructure.
- Use Cases and Practical Solutions: Kate Karimson, Chief Commercial Officer, R3, spoke about real-world applications of blockchain in financial markets, such as collateral mobility and digital money. She stressed the importance of creating production-grade solutions and integrating blockchain technology into legacy systems to ensure regulatory compliance and efficiency.
- Bridging TradFi and DeFi: The panellists discussed how traditional financial institutions can find common ground with decentralised networks. Barbosa noted that collaboration at the foundational level is crucial, while Vlachos emphasised the importance of creating regulatory-compliant channels to connect public and private blockchains.
- The Role of Centralised Infrastructure: Ahmed highlighted the evolving responsibilities of centralised market infrastructure providers, who now look to re-intermediate themselves in the digital ecosystem. He pointed out the challenges of managing gas fees, sanction screening, and the operational model required for scaling.
- Predictions for the Future: The panellists shared their visions for the next five years. Barbosa hopes to see digital identity solutions resolved, Vlachos envisions seamless fund transfers across chains, Karimson looks forward to taking interoperability for granted, and Ahmed expects tokenisation to become standard practice.
- Cost of Interoperability: Addressing a question from the audience, Vlachos clarified that the financial cost of interoperability is minimal due to technological efficiencies like transaction batching. Ahmed added that the cost dynamics depend on whether the benefits, such as wider distribution and collateral use, justify the expense.
Speakers:
- Daniela Barbosa, General Manager, Decentralized Technologies, Linux Foundation & Executive Director, LF Decentralized Trust
- Georgios Vlachos, Co-founder of Axelar Protocol & Director, Axelar Foundation
- Kate Karimson, Chief Commercial Officer, R3
- Rehan Ahmed, Chief Executive Officer, Marketnode
Moderator:
- Fiona Murray, Managing Director, APAC, Ripple