The article explores the transformative power of trade asset tokenization and shares why now is the perfect time to adopt and scale trade asset tokenization. It also examines the four key benefits of embracing tokenization and presents actions that investors, banks, governments, and regulators can take now to seize this opportunity and shape the journey of finance into the next chapter.
Article author: Will Awang
Source: Web3 Xiaolu
This research report co-authored by Standard Chartered Bank and Synpulse is a comprehensive report on the tokenization of real-world assets in the context of cross-border trade. It details how tokenization will become a game-changer for global trade, transforming trade assets into transferable instruments that provide investors with unprecedented levels of liquidity, divisibility, and accessibility.
Traditional financial assets can experience significant fluctuations due to macro market influences, but trade assets differ in this regard. While trade is closely related to the economy, economic downturns will impact bank lending. Nevertheless, the enormous trade finance gap still provides a good opportunity for investors to enter the market, as small and medium-sized enterprises still require substantial financing even during economic slowdowns, creating ongoing investment opportunities. To some extent, trade assets can withstand global economic recessions.
At the same time, due to the relatively short cycles, low default rates, and high financing demands of trade assets, we believe they are more suitable to become the underlying assets for tokenization. Additionally, the tokenization of trade assets can provide numerous benefits for all participants and processes involved in the complex global trade process, whether in 1) the payment of cross-border trade funds, 2) the financing needs among various trade participants, or 3) the use of smart contracts to enhance trade efficiency and reduce complexity, ensuring transparency.
Standard Chartered Bank anticipates that the demand for the tokenization of real-world assets will reach $30.1 trillion by 2034, with trade assets becoming one of the top three tokenized assets, accounting for 16% of the total tokenized market within the next decade.
Therefore, we have compiled this report into writing to provide a reference for market participants and investors. The article explores the transformative power of trade asset tokenization and shares why now is the perfect time to adopt and scale trade asset tokenization. It also examines the four key benefits of embracing tokenization and presents actions that investors, banks, governments, and regulators can take now to seize this opportunity and shape the journey of finance into the next chapter.
Enjoy the following:
Tokenization of real-world assets: A game changer for global trade
In the past year, we have witnessed the rapid development of tokenization, reflecting a significant shift towards a more accessible, efficient, and inclusive financial system. In particular, the tokenization of trade assets represents both a change in our understanding of value and ownership and a fundamental change in investment and exchange mechanisms.
Through the successful pilot of Standard Chartered Bank in the Project Guardian initiative led by the Monetary Authority of Singapore, the feasibility of asset tokenization as an innovative 'originate-to-distribute' structure has been demonstrated, along with the potential opportunities it presents for investor participation in financing real-world economic activities.
Standard Chartered Bank further advanced this vision in the Project Guardian initiative, becoming the first to create an initial token issuance platform for real-world assets. They successfully simulated the issuance of $500 million asset-backed securities (ABS) tokens backed by trade finance assets on the public blockchain Ethereum.
The success of this project demonstrates how open and interoperable networks can be used in practice to facilitate access to decentralized applications, inspire innovation, and promote growth within the digital assets ecosystem. This pilot project proves the practical application potential of blockchain technology in the financial sector, particularly in enhancing asset liquidity, reducing transaction costs, and improving market access and transparency. Through tokenization, trade assets can be accessed and traded more effectively by global investors, transforming trade assets into transferable instruments and unlocking previously unimaginable levels of liquidity, divisibility, and accessibility. It not only provides investors with a new opportunity to balance their portfolios with digital tokens that have traceable intrinsic value but also helps to close the global $2.5 trillion trade finance gap.
1. What is asset tokenization?
As the financial world undergoes rapid digitalization, digital assets stand at the forefront, fundamentally changing how we view and exchange assets. Traditional finance, combined with innovative blockchain technology, will lead to a new era of digital finance, fundamentally reshaping our understanding of value and ownership.
Before 2009, the idea of transferring value through digital assets was still unimaginable. Value exchange in the digital realm still relied on intermediaries acting as gatekeepers, creating inefficient processes. Despite the financial industry having disputes over the precise definition of digital assets, it is undeniable that they permeate every corner of our technology-driven lives. From the rich digital files we use daily to the content we consume on social media, they are present in every aspect of our modern existence.
The introduction of blockchain technology has changed the game. It is fundamentally transforming financial markets. What was once unimaginable is becoming a reality, and tokenization has become a key element in expanding the digital assets market, shifting it from niche and experimental to widely accepted and mainstream.
'Tokenization' essentially refers to the process of issuing digital representations of traditional assets in the form of tokens on a distributed ledger.
Tokenization refers to the process of issuing digital representations of real or traditional assets in the form of a token on a distributed ledger.
These tokens are essentially digital certificates of ownership that can enhance operational efficiency and automation. Notably, it is closely related to the concept of fragmentation, where a single asset can be divided into smaller transferable units. However, the most revolutionary aspect is that tokenization enhances access to new asset classes and improves financial market infrastructure, opening the door to innovative applications and entirely new business models in decentralized finance (DeFi).
2. The development of tokenization
Tokenization can be traced back to the early 1990s. Real Estate Investment Trusts (REITs) and Exchange-Traded Funds (ETFs) were among the first to realize decentralized ownership of physical assets, allowing investors to own a portion of physical assets such as buildings or commodities.
Until 2009, the world witnessed the birth of Bitcoin, a digital currency that challenged the concept of traditional third-party intermediaries. It sparked a revolution, followed by the emergence of Ethereum in 2015. Ethereum is a groundbreaking software platform powered by blockchain technology that introduced smart contracts capable of supporting the tokenization of any asset. It laid the foundation for the creation of thousands of tokens representing various assets, such as cryptocurrencies, utility tokens, security tokens, and even non-fungible tokens (NFTs), showcasing the potential uses of tokenization in representing digital and physical projects.
In the following years, a series of new phenomena emerged: Initial Exchange Offerings (IEO) and Initial Coin Offerings (ICO). The U.S. Securities and Exchange Commission (SEC) coined the term 'Security Token Offering (STO)' in 2018, paving the way for regulated tokenized offerings and giving rise to solutions that comply with regulatory requirements.
These developments have paved the way for the tokenization of real-world assets to take center stage. They continue to act as a catalyst for transformation and technological improvement in the financial services sector, paving the way for ongoing new applications. The financial services industry continues to actively explore the potential of tokenization. Driven by customer demand and the potential opportunities that tokenization brings to banks and the global digital economy, financial institutions are increasingly seeking to integrate digital assets into their services.
A major example of such initiatives is the Guardian project, a collaborative effort between the Monetary Authority of Singapore (MAS) and industry leaders to test the feasibility of asset tokenization and DeFi applications. These industry pilots will further reveal the opportunities and risks brought about by the rapid innovation of digital finance and tokenization.
Case A: Project Guardian Asset-Backed Securities (ABS) Tokenization Project
Standard Chartered Bank showcased a bold vision in the Project Guardian initiative: how to use blockchain networks to advance the development of a safer and more efficient financial network. This is a collaboration between MAS and industry leaders, where participating institutions conducted market case studies to design a blueprint for future market infrastructure that leverages the innovative potential of blockchain and DeFi.
Standard Chartered Bank has taken this vision further by pioneering a token issuance platform for real-world assets, successfully simulating the issuance of $500 million asset-backed securities (ABS) tokens backed by trade finance assets on the public blockchain Ethereum. Through this initiative, Standard Chartered tested the end-to-end process from creation to distribution, including simulating default scenarios.
Tokenization: Trade finance receivables are tokenized in the form of non-fungible tokens (NFTs).
Risk-based Allocation: These NFTs are structured based on expected risk and return scenarios (Senior and Junior Tranche), ensuring strict cash flow allocation.
Fungible Token Creation: Based on the underlying asset's NFTs and structured design, two classes of FT tokens are created. Senior FT tokens offer fixed yields, while Junior FT tokens provide excess spreads.
Distribution and access: Finally, these tokens are distributed to investors through ITO.
The successful pilot of Project Guardian demonstrated how to use open and interoperable blockchain networks in practice to facilitate access to decentralized applications, stimulate innovation, and promote growth in the digital asset ecosystem. Application scenarios can expand to tokenization of financial assets such as fixed income, foreign exchange, and asset management products, enabling seamless cross-border trading, distribution, and settlement.
At the same time, by tokenizing financing needs in cross-border trade scenarios, this new digital asset class has been introduced to a wider pool of investors and has helped improve the liquidity of the trade finance market.
3. What else can we expect beyond trade asset tokenization?
Tokenization is not only about creating a new way to invest in digital assets and bringing desperately needed transparency and efficiency to trade finance; it also delves deeper into trade financing, simplifying the complexities of supply chain finance.
Credit transmission: Typically, trade financing is only available to established first-tier suppliers, while deeper suppliers—smaller entities in the supply chain that often lack scale—are frequently excluded from trade financing. Through tokenization, the overall resilience and liquidity of the supply chain can be increased by enabling small and medium-sized enterprises to rely on the credit ratings of anchor buyers.
Creating liquidity: There is often a claim that tokenization can unleash enormous potential, especially in inefficient and illiquid markets. A consensus is forming in the market that, due to lower trading costs and enhanced liquidity, investors are inclined to adopt tokenized assets. For the supply-side institutions, the appeal seems to lie in attracting new capital, enhancing liquidity, and streamlining operational efficiency.
In addition, Standard Chartered believes that the true transformative power of tokenization is much greater. The next three years will be a critical juncture for tokenization, with new asset classes rapidly being tokenized, and trade finance assets will occupy a central position as a new asset class. Industry development is reaching a new level, where public efforts will yield greater returns than isolated endeavors.
To provide access to new asset classes, banks play a key role in providing trust and connecting existing traditional financial markets with new, more open, token-supported market infrastructures. Maintaining trust is fundamental for validating the identity of issuers and investors, conducting KYC/AML checks, and granting credentials to participate in this new interoperable financial ecosystem.
Standard Chartered envisions a future where traditional markets coexist and ultimately merge with tokenized markets, creating an urgent need for an open and permissioned multi-asset and multi-currency digital asset infrastructure to complement traditional markets. Compared to past closed-loop markets, ownership and utility are shared among a broader range of market participants, achieving a balance between inclusivity and security. Such infrastructure can not only promote efficiency and innovation but also address current industry pain points, such as redundant investments and isolated, fragmented developments that hinder growth and collaboration.
4. What is driving the tokenization of trade assets?
Because tokenization has brought unprecedented liquidity, divisibility, and accessibility to an asset class that has been seen as complex for the past decade, the current macro and banking environment has become a catalyst for adoption.
4.1 SMEs: Unlocking trillions of dollars in opportunities to bridge the trade finance gap
Standard Chartered Bank expects global trade to grow by 55% over the next decade, reaching $32.6 trillion by 2030. Digitalization, expansion of global trade, intensified market competition, and strengthened inventory management are the factors driving this expansion. However, there exists a huge gap between trade finance demand and supply, especially for small and medium-sized enterprises in developing countries.
The trade finance gap has been sharply increasing—from $1.7 trillion in 2020 to $2.5 trillion in 2023. This growth represents a 47% increase in demand. It is the largest single-period increase since this metric was introduced, with multiple factors, including COVID-19, economic difficulties, and political instability, making it more challenging for banks to approve trade finance.
Moreover, the International Finance Corporation (IFC) estimates that there are 65 million enterprises in developing countries (40% of formal micro, small, and medium enterprises (MSME)) with unmet financing needs. While the plight of small and medium-sized enterprises and micro enterprises is widely recognized, a crucial segment remains overlooked: the 'missing middle'.
'Missing middle enterprises' or medium market enterprises (SMEs) are a group that investors find difficult to access. SMEs are situated between large investment-grade companies and small retail and micro enterprises, especially active in rapidly developing regions such as the Middle East, Asia, and Africa. They represent a large and underdeveloped market, providing significant opportunities for investors.
This investment opportunity can also withstand economic recessions. As trade is closely linked to the economy, economic downturns will impact bank lending. However, the significant trade gap provides a good opportunity for investors to enter the market, as small and medium-sized enterprises still require substantial financing even during economic slowdowns, creating ongoing investment opportunities.
Also noteworthy is that, according to data from the Asian Development Bank, the $2.5 trillion global trade finance gap represents 10% of all trade exports. As current trade finance covers 80% of today's exports, an additional 10% may represent undisclosed trade finance gaps, as companies either did not seek such financing or were unable to obtain it. This means that the total undisclosed trade finance gap could potentially reach $5 trillion in total opportunity.
4.2 Undeveloped yield markets that have not been tapped by investors
Trade finance assets are attractive but underinvested. They produce strong risk-adjusted returns and have some unique characteristics.
Enabling risk diversification. Trade assets have short tenures and can self-liquidate, making them low-risk investments with relatively low correlation to stock and bond markets. This makes them a more stable asset class while still providing strong risk-adjusted returns.
Broad investment range. There is a wide variety of trade assets available to meet investors' specific risk preferences. Coupled with emerging and frontier markets that are difficult to access, such as Ghana, Ivory Coast, Bangladesh, or Saudi Arabia, this asset class can cater to a wide range of investor needs.
Low default risk and high recovery rates. Most importantly, trade finance assets have an impressive performance record. Compared to public credit, trade finance has a relatively low default rate, and recovery rates upon default are higher, indicating that the risk-adjusted return on trade assets is superior to other debt instruments.
Despite institutional investors' underinvestment in these assets due to a lack of understanding, inconsistent pricing, lack of transparency, and operational intensity, tokenization can help address this issue.
4.3 Banks are incentivized to adopt tokenization and utilize blockchain-based digital issuance distribution models to unlock capital in frontier markets.
Basel IV is a comprehensive set of measures that will significantly impact how banks calculate risk-weighted assets. Although full implementation is not expected until 2025, banks will need to modernize their distribution business models to formulate growth strategies under Basel IV.
Through blockchain-based origination and distribution, banks can derecognize assets from their balance sheets, thereby reducing the regulatory capital required to cover risks and helping to facilitate efficient asset origination. Banks can leverage tokenization by distributing trade finance instruments to capital markets and emerging digital asset markets. This 'digital originate-to-distribute' strategy for their trade finance assets can improve banks' return on equity, expand funding sources, and enhance net interest income.
The global trade finance market is vast and ripe for tokenization. Most trade finance assets between banks can be tokenized and converted into digital tokens, allowing global investors seeking returns to participate.
4.4 Real demand drives growth
According to a report by EY Parthenon, demand for tokenized investments is expected to soar, with 69% of buyer companies planning to invest in tokenized assets by 2024, up from 10% in 2023. Additionally, by 2024, investors plan to allocate 6% of their portfolios to tokenized assets, rising to 9% by 2027. Tokenization is not a fleeting trend; it represents a fundamental shift in investor preferences.
However, the supply side of the market is still in the early stages, with the total value of real-world asset tokenization (excluding stablecoins) expected to be around $5 billion by early 2024, mainly involving commodities, private credit, and U.S. Treasuries. In contrast, Synpulse estimates that the reachable scale, including the trade finance gap, could reach $14 trillion.
Based on current market trends, Standard Chartered Bank anticipates that the demand for the tokenization of real-world assets will reach $30.1 trillion by 2034, with trade finance assets becoming one of the top three tokenized assets, accounting for 16% of the total tokenized market within the next decade. As demand may exceed supply in the coming years, it has the potential to help address the current $2.5 trillion trade finance gap.
5. Four benefits of embracing tokenization
Asset tokenization has the potential to change the financial landscape, providing increased liquidity, transparency, and accessibility. While it holds promise for all market participants, realizing its full potential requires the collective efforts of all stakeholders.
Trade finance stimulates the global economy, but traditionally, these assets have primarily been sold to banks. Tokenization opens the door to a broader group of investors and ushers in a new era of growth and efficiency.
5.1 Improving market access
Today, institutional investors are eager to enter new, rapidly growing markets. Emerging markets can serve as an attractive option for diversification. However, due to a lack of necessary local expertise and effective distribution networks, investors are unable to fully capitalize on the opportunities presented by emerging markets.
This is the advantage of tokenization. By distributing trade finance assets through digital tokens, banks can increase net interest income and optimize capital structures, while investors, businesses, and communities that rely on trade finance can benefit from increased accessibility. A closer examination of Standard Chartered Bank's early collaboration with the Monetary Authority of Singapore in Project Guardian highlights the transformative power of tokenization. This pilot demonstrates how open, interoperable digital asset networks can unlock market access and allow investors from different ecosystems to participate in this tokenized economy, paving the way for more inclusive growth.
5.2 Simplifying trade complexity
Due to the involvement of multiple parties and the cross-border nature of global capital and goods trade, trade finance is often viewed as a complex scenario. This asset class has a low level of standardization, with varying ticket sizes, timelines, and underlying commodities, making large-scale investment difficult.
Tokenization provides a platform that can address this complexity.
Tokenization is not just a new way to acquire investments; it is also a driver of deep financing. Typically, trade finance is only available to established first-tier suppliers, while 'deep' suppliers, which are smaller and often lack scale, are usually excluded from trade finance. As a solution, token-supported deep supply chain financing can eliminate this complexity.
In addition to bringing desperately needed transparency and efficiency to trade finance, tokenization can also enhance the overall resilience and liquidity of the supply chain by enabling small and medium-sized enterprises to rely on the credit ratings of anchor buyers.
Case B: Project Dynamo: Using Digital Trade Tokens to Solve Trade Complexities
Project Dynamo is a collaborative project between Standard Chartered Bank, the Bank for International Settlements Hong Kong Innovation Hub, the Hong Kong Monetary Authority, and technology companies, exemplifying the use of digital trade tokens to solve trade complexities.
This collaborative effort has facilitated the development of a prototype platform where anchor buyers use tokens to make programmable payments to suppliers across their entire supply chain. Smart contract technology is used to automatically execute and redeem these tokens based on specific events (such as triggering conditions for eBL or ESG), enabling efficient and transparent trade processes. Anchor buyers can also use tokens to make conditional payments to small and medium-sized enterprise suppliers, and tokens will only be redeemed for cash when preset conditions (such as proof of delivery or electronic bills of lading) are met.
Token holders also have multiple ways to handle tokens. They can hold tokens, sell tokens for financing, or use them as collateral for loans. The transfer of ownership through tokenization gives deep-tier suppliers greater flexibility in managing funds efficiently.
The benefits are not limited to individual participants. Digital trading tokens are issued in the form of 'stablecoins' and are backed by dedicated bank funds or bank guarantees. Coupled with the programmability and transferability provided by blockchain infrastructure, institutional investors gain increased confidence in investing in small and medium-sized enterprises and supply chain financing (previously viewed as high-risk areas).
The Project Dynamo initiative is just the beginning. It lays out a blueprint to address the challenges suppliers (especially SMEs) face in obtaining financing from deep-tier suppliers by providing more adaptive and effective financing and payment methods. Ultimately, it creates a new financing channel for those who previously lacked access to traditional financing options.
Case C: Optimizing trade processes/financing using programmable CBDC
While tokenization brings exciting possibilities for addressing the complexities of the trade ecosystem, the programmability of Central Bank Digital Currencies (CBDCs) introduces another game-changing factor. These digital versions of fiat currency issued by central banks can leverage the automatic execution capabilities of smart contracts to achieve programmable transactions, further streamlining trade and supply chain financing processes.
Imagine a scenario where a large company (anchor buyer) with a good credit record has a network of suppliers, many of whom are small and medium-sized enterprises (SMEs) that have difficulty obtaining loans. With programmable CBDCs, the anchor buyer can instruct their bank to program future payable CBDCs and directly distribute them to suppliers, who can then use these CBDCs to enhance operational capital efficiency or make payments to lower-tier suppliers.
This streamlined process offers numerous advantages for deep supply chain financing:
Enhanced flexibility: Deep-tier suppliers can use digital currency as collateral to borrow fiat currency, unlocking new financing options and improving operational flexibility.
Smoother credit assessments: Banks can use customer information collected through payment data to streamline credit assessment processes for small and medium-sized enterprises, reducing the operational costs and risks faced by banks when collecting data.
Scalability and transparency: CBDCs make the operations of small and medium-sized enterprises more scalable, and all parties in the supply chain can more easily report on ESG management and sustainability.
Stability and confidence: On a broader scale, CBDCs enhance the stability and transparency of the entire supply chain.
In the scenarios mentioned above, smart contracts play a crucial role in helping automate payment and financing processes:
Pre-Defined Contract: By leveraging smart contracts, CBDCs can be programmed to integrate payment and trade information, becoming a new trade financing tool.
Purpose-Bound Payment: Deep-tier suppliers that do not meet credit requirements can use tokens as collateral to obtain financing related to the issuance purpose.
Purpose-Bound Financing: Such CBDCs can be transferred by anchor buyers to their suppliers, who can immediately use them as a form of payment to deep-tier suppliers.
Obligation Fulfillment: Once the conditions in the smart contract are met, the smart contract will execute itself, and the restrictions on the CBDC will be automatically lifted.
5.3 Digital securitization
While securitizing trade assets into financial products in traditional finance is effective, it only applies to a limited subset of asset classes, such as working capital loans and import-export financing assets. Tokenization will significantly expand this investable asset set.
Due to the short tenure of trade assets, the entire process is operationally inefficient, and to track the underlying assets, evaluate performance, and determine funding and payments, the trade asset class requires comprehensive management solutions.
All of these can be addressed through tokenization and the programmability of smart contracts, along with AI automation to handle the complexities and diversities involved. By automating processes, data management can be streamlined and automated. Each token is traceable as it is linked to accounts receivable. This helps with status monitoring, minimizes human error, enhances transparency for all stakeholders, and supports the assessment of accounts receivable and financing amounts.
Programmability also streamlines the process of transferring ownership during transactions, improving transaction efficiency.
As tokenization involves a standardized representation of receivables, it creates a common language that can make accounts receivable management across jurisdictions more straightforward.
5.4 Reducing information asymmetry
Utilizing blockchain to trace the underlying assets helps reduce information asymmetry between issuers and investors, thereby enhancing investor confidence.
Establishing a listing framework for tokenized assets is an important step in encouraging adoption and enhancing investor confidence, as public disclosure of issuance documents makes it easier for investors to obtain relevant information necessary for due diligence. Listing tokens can also ensure that issuers maintain a certain level of transparency and meet regulatory disclosure requirements, which is crucial for many institutional investors.
Today's investors are more sophisticated, demanding higher transparency and control. We will soon see tokenized products emerge as a new way to reduce information asymmetry. In addition to representing underlying assets, tokens can also include other functionalities, such as providing online access to operational and strategic data from the aforementioned assets. For example, in the tokenization of working capital loans, investors can access operational parameters of the underlying business, such as profit margins or the number of potential customers in sales channels. This model has the potential to enhance investment returns and elevate transparency to a new level.
6. How to participate in the tokenization market?
Asset tokenization has the potential to change the financial landscape, providing higher liquidity, transparency, and accessibility. While it brings hope for all market participants, realizing its potential requires the collective efforts of all stakeholders.
5.1 Adoption
For institutional investors seeking access to new asset classes or enhanced returns, tokenization can provide more specific, differentiated solutions to meet their clients' particular risk-return profiles and liquidity preferences.
Family offices and high-net-worth individuals (HNWI) can benefit from a more effective wealth growth method through a decentralized and transparent product structure, unlocking previously inaccessible opportunities.
To seize this investment opportunity, investors should start with a solid foundation. As this is an emerging and evolving field, understanding new risks is crucial, so education should be the starting point to build expertise.
For example, participating in the pilot program will allow investors and asset managers to experiment and build confidence in tokenized asset allocation.
5.2 Collaboration
The industry is at a turning point of full acceptance of asset tokenization. Collaboration across the entire market is essential to realize the benefits of tokenization. Overcoming distribution challenges and achieving better capital efficiency requires collaborative efforts. Banks and financial institutions can expand their reach through collaborative business models, such as developing industry utilities for tokenization. Similarly, intermediaries like insurance companies can act as alternative distribution channels to expand market access. Recognizing the transformative impact of tokenization on capital efficiency and operational efficiency, the industry must unite and leverage the power of shared infrastructure.
In addition to financial institutions, a broader ecosystem that includes technology providers and other participants must collaborate to create a supportive environment. Achieving interoperability, legal compliance, and efficient platform operations through standardized processes and protocols is crucial.
Tokenization efforts are currently in their infancy and decentralized state, urgently requiring industry-wide collaboration to address these key issues, combining the robustness of traditional finance (TradFi) with the innovation and agility of DeFi. This strategy will pave the way for a more stable, unified, and mature digital asset ecosystem, balancing technological advancement with regulatory consistency and market stability.
5.3 Promoting
Finally, not only market participants but also governments and regulators play crucial roles in fostering responsible growth in the digital asset industry. By developing policies that encourage global trade and support communities (e.g., creating jobs), they can promote industry development while mitigating risks.
A clear and balanced regulatory framework can foster innovation while guarding against pitfalls in the crypto space.
Establishing public-private partnerships with banks and other financial institutions is also crucial. These collaborations can accelerate industry development by promoting responsible and sustainable growth.
Through this collaboration, regulators can ensure that the growth of the digital asset industry benefits the economy, improves global financial integration, creates jobs, and maintains market integrity and investor protection.