This week we launched the SFTI paper “Vision of Tokenized Finance” at the distinguished event “Finance meets DLT” held at the Center for Innovative Finance (Universität Basel).

In recent years, tokenization has been identified as one of the biggest trends in the financial services industry. Hence, tokenized finance is a fast-growing movement that leverages blockchain technology to create a more open and accessible financial system. The SFTI paper on the vision for tokenized finance in Switzerland is describing how to create a financial system that is more inclusive, transparent and efficient than the traditional financial system (TradFi). Tokenized finance aims to create a new infrastructure for the FS industry, platforms and applications that allow for the creation and exchange of products based on digital assets (i.e. tokenized securities, stablecoins, CBDCs, staked crypto assets, non-fungible tokens). This will allow for faster and cheaper transactions, greater transparency, and better accessibility for people who are currently underserved by the traditional financial system.

The report begins by establishing a framework consisting of contextual as well as main elements of the vision of tokenized finance. These elements are then assessed based on their present state and integrated into a comprehensive 10-year vision.

In the coming years, the area of tokenized finance is likely to see significant growth and innovation. To be able to reach this point, the working group of SFTI recommends actions in the following seven fields:

  1. Facilitation of improved interoperability
  2. Implementation of a functioning and broadly accepted payment leg for DvP
  3. New ways of collaboration and data management for personal data and identity management (KYC, E-ID)
  4. Clarification of secondary market environments
  5. Disintermediation awareness by e.g. labelling custody solutions
  6. Increase automation with smart contract based processing
  7. Broad education in the area of digital assets

Our paper represents the work of representatives of 15 different financial services institutions. Herewith, we would like to thank to all contributors:

Pascal Egloff and Andra-Maria Maute (Co-Leaders of the working group), Cyrill Blöchlinger, Magdalena Platter, Andrew D. Vieyra, Janis M. Heibel, Raphael Bianchi, Dominique Brodbeck, Nils Bulling, Francesco Maria De Collibus, Stefan Jeker, Marco Kessler, Tatiana Müller, Stefan Neumann, Peter Durrer, Guilhem Sirven, Nicolas Potterat, Holly Jones, Sandro Sutter, Kornel C.C. Wassmer, and to the design agency Alltag. Thank you all for your grit, hard work and dedication for the topic of digital assets.

Please download and check out our full report:

SFTI paper “Vision of Tokenized Finance” (PDF)

We look forward to implementing with you some of the ideas of our report.

Do feel free to contact us to discuss possible collaborations and implementation initiatives.