Banks’ efforts to tokenise assets progress slower than anticipated

A new report recommends that global rules be developed between DLTs and countries to standardise the trading of tokenised assets.

Cryptoassets, Plate, Gold, Coin, Money, Treasure, Accessories, Jewelry, Locket, Pendant

Coordinated global policy is needed to facilitate the trading of assets between different blockchains, according to a report published on Thursday. This comes only two days after banking executives at the Money20/20 conference said that the implementation of tokenised assets is moving slower than expected

Tokenised assets represent traditional assets in the form of online tokens. They are exchanged through distributed ledger technology (DLT) as a way of making trading assets safer and faster. Blockchain is only one of various types of DLT. However, as it stands, there is not an mutually intelligible way of transferring these tokenised assets between different DLTs. Moreover, compliance laws are at different stages of development depending on the country, making this trade all the more difficult. The report therefore recommends a standard to bridge this two-fold issue. 

The report was written primarily by the Axelar Foundation and firm Metrika, with contributions from various financial service institutions, including Deutsche Bank. Their Asia Pacific head of Securities & Technology Advocacy solutions or become irrelevant.”

In spite of the novelty of this process,  the violation of compliance laws can entail legal repercussions. Changpeng Zhao, chief executive of the world’s largest cryptocurrency exchange Binance, which also uses DLT, was sentenced for violating US anti-money laundering laws in April.