Olivier Vigna’s Post

While Europe has been a frontrunner in enabling #DLT-based experimentation, the development of DLT-based markets towards scaling has to some extent overtaken the current regulatory regime, which in part inhibits the full deployment of DLT in the financial sector and the further scaling of DLT-based capital markets, including the #tokenisation of sovereign, supranational and agency bonds (SSA bonds). These developments, however, also provide Europe with an opportunity now to be a leader in developing a more definitive policy and regulatory regime that enables the secure scaling of DLT-based capital markets. This AFME (Association for Financial Markets in Europe) report focuses on the policy and regulatory changes that are necessary to enable that development and growth of DLT-based capital markets. In updating and adjusting the regulatory and policy framework in light of developments in DLT-based capital markets and to enable further scaling, four key principles should be considered: 🔹 Achieving full technological neutrality 🔹 Achieving economic equivalence between DLT based securities and traditional formats 🔹 Balancing benefits from technology with new risks 🔹 Enabling innovation 

Euroclear's white paper examines the shifting dynamics of the European CSDs sector and post-trade architecture. It addresses ongoing market fragmentation, proposing strategies to enhance efficiency and foster deeper market integration, ultimately guiding the sector towards a more unified and efficient financial system. #Euroclear #CSD #posttrade

🌐 The Evolution of International Finance: A Journey Through the Decades 📈 Over the past few decades, international finance has undergone a dramatic transformation, shaped by technological innovations, changing regulations, and increasing globalization. Here are some key milestones in this evolution: The 1970s: The End of Bretton Woods and the Birth of the Forex Market The dissolution of the Bretton Woods system in 1971 marked the beginning of a new era for floating exchange rates, leading to increased volatility but also new trading and diversification opportunities for international investors. The 80s-90s: Financial Liberalization and Globalization The deregulation and liberalization of financial markets in the 80s and 90s allowed for greater capital mobility. Emerging markets began to play a more significant role, attracting foreign investments and boosting global economic growth. The 2000s: Technology and the Rise of Fintech The advent of technology revolutionized the financial sector, with the emergence of fintech, electronic payments, and online trading platforms. These innovations democratized access to financial services and improved market efficiency. The 2010s: Post-Crisis Regulation and Financial Stability The 2008 financial crisis led to a major overhaul of international financial regulations. Reforms such as Basel III were implemented to strengthen the resilience of banks and reduce systemic risks. Today: Sustainable Finance and Cryptocurrencies Sustainable finance has become a central pillar, with a growing focus on responsible investments and ESG (Environmental, Social, Governance) criteria. Simultaneously, cryptocurrencies and blockchain are redefining the boundaries of finance, offering decentralized alternatives to traditional financial systems. The evolution of international finance is a testament to constant adaptability and innovation in our ever-changing world. For professionals in the sector, staying at the forefront of trends and developments is crucial to navigating this dynamic landscape. 🔗 Share your thoughts: How do you see the future of international finance? #Finance #Fintech #Investment #Crypto #SustainableFinance #Innovation #GlobalEconomy #Regulation #Technology #LinkedIn

💡 Largest RWA tokenization ever issued - $4.3B bond by German bank KfW 💡 What do you need to know? 1️⃣ On Thursday June 27 - KfW issued the largest tokenized bond in history - at €4 billion with a maturity of 3 years and a coupon of 2.75% (*cough* Ethena's "internet bond" at 33.5%) #rwatokenization 2️⃣ KfW is a German state owned innovation only bank and headquartered in Frankfurt am Main with branches in Berlin and Bonn https://lnkd.in/gyceHVwa #frankfurtammain 3️⃣ Thursday of last week was a very unfortunate day to announce because of Friday's activities. I'm still catching up. 4️⃣ KwF's tokenized bond is the first high-volume benchmark bond issued as a central register security (kryptowertpapier) pursuant to the German electronic securities act (eWpG). The bond has a value date of 2 July 2024. It is not on BaFin's Kryptowertpapierliste nach eWpG spreadsheet updated this morning yet, presumably because of the value date - https://lnkd.in/g8M__NqD 🔥 Nerd alert - More on "kryptowertpapier" another day (not crypto btw, got to be a bit confused to think that one) 🔥 5️⃣ “We are delighted to have successfully completed a second digital transaction, with a focus on further automating data generation and speeding up the issuance process, thus improving scalability,” said Tim Armbruster, Treasurer at KfW. “We thank Deutsche Börse for the constructive cooperation over the past months. It is important to us to provide key insights from the issuer’s perspective to contribute to the further digitisation of capital markets.” The issuance was facilitated by Clearstream via Deutsche Börse’s digital securities platform D7. Clearstream is the post-trade business of Deutsche Börse Group. There have been other large token bond issuances this year - i.e. the $800M Hong Kong green bond in February. The global bond market is approx $130T 😣 Depressing disclosure of the year "NOT FOR PUBLICATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, SOUTH AFRICA, OR JAPAN" 😣 See for more https://lnkd.in/gx6Dn7Pi h/t to Security Token Market 🌴/ Security Token Group - Security Token Prime Insights https://lnkd.in/gPCrPcmy - pretty much the only thing I read on a Monday morning.

The past year has seen a rapid acceleration in tokenisation initiatives, reflecting a significant shift towards more accessible and efficient financial systems. In particular, real-world asset tokenisation of trade finance assets represents both a shift in how we perceive value and ownership, and a fundamental change in the mechanisms of investment and exchange. This free paper, originally published by Standard Chartered Corporate & Investment Banking, offers comprehensive insight into the vast opportunities that tokenisation presents, spotlighting real-world projects centred around digital assets. Download paper: https://lnkd.in/dchf8MFY #treasury #trade #tokenisation #digitalassets #standardchartered

Our Luxembourg lawyers Jan Boeing and Tanner Wonnacott discuss updates related to the European Commission’s Digital Finance Package of September 2020, including the Regulation on Markets in Crypto-assets (MiCA) and the Digital Operational Resilience Act (DORA). #fintech #blockchain #financelaw

Standard Chartered - Real-world asset tokenisation: A game changer for global trade Source: https://lnkd.in/g-cPeXpQ #digitalassets #cryptoassets #asset #tokenization #gamechanger #global #trade #trade #finance Credits: Kai Fehr Yves Roesti Steven Hu Jakub Smolinski Irfan Butt Kevin Chang Adrian Tan Lit Hau Tan Vipin Vashishtha Marianne Webber Katy Kwok Alex Yu Highlights: Over the past year, we have witnessed a rapid acceleration in tokenisation initiatives, reflecting a significant shift towards more accessible, efficient and inclusive financial systems. In particular, real-world asset tokenisation of trade finance assets represents both a shift in how we perceive value and ownership, and a fundamental change in the mechanisms of investment and exchange. Through our successful pilot within Monetary Authority of Singapore-led Project Guardian, we demonstrated the viability of asset-backed tokenisation as an innovative originate-to-distribute structure, and the potential opportunities it presents to investors to participate in financing real-world economic activity. By transforming trade assets into transferable instruments, we unlock a level of liquidity, divisibility and accessibility previously unimaginable. Not only does it provide a new opportunity for investors to balance their portfolio with a digital token that has traceable intrinsic value, but it can also help narrow the USD 2.5 trillion global trade finance gap. As we continue to build on our learnings and move towards operationalising this innovation at scale, this paper explores the transformative power of trade finance asset tokenisation. We delve into the remarkable opportunities this brings and share why now is the perfect time to adopt and scale tokenisation in trade finance. We also examine the key benefits of embracing tokenisation, and present actions you can take now as investors, banks, governments and regulators to capture this opportunity and join us on the journey to shape the next chapter in finance. It is encouraging to witness tokenisation gaining momentum among our clients and the broader market. This growing acceptance not only validates our early initiatives but also heralds a future filled with exciting opportunities. As the industry continues to transcend current business models and embed tokens as a core component of the financial future, we remain committed to helping our clients scale and operationalise tokenisation. We are excited to share our insights and experiences in this white paper and to explore the vast opportunities that tokenisation offers. Together, we can pave the way for a more innovative and inclusive financial ecosystem. 

🛵 Kickstarting Central Register Securities for KfW 🛵 Today marks the settlement of KfW’s inaugural benchmark-sized bond issued as a central register security through Clearstream's D7 digital securities platform: the KfW EUR Benchmark Bond, totaling €4 billion with a 2.75% cupon, due in October 2027. This achievement represents a significant milestone for the German capital market, signifying a leap forward in transparency and efficiency. It also underscores our commitment as one of the largest and most active bond issuers to driving innovation in the financial industry. Our goal is to swiftly transition issuances of central register securities to regular operations, made possible by the dedicated efforts of numerous KfW colleagues and the excellent collaboration with #TeamClearstream, the post-trade arm of Deutsche Börse. 🤝 Among our KfW team members is Normen Günther, a passionate collector and enthusiast of classic scooters. Beyond his love for scooters, Normen is deeply committed to driving innovations in #capitalmarkets. Since the German Electronic Securities Act permitted central register securities, Normen and colleagues have been tirelessly dedicated to this endeavor. Approximately 18 months ago, we conducted the first pilot transaction of this kind, and now we are kickstarting central register securities for regular operations. 🚀 For more information on the D7 transaction, please refer to our press release 👉️ https://lnkd.in/gzRaZ9xS #eWpG #DigitalBonds #DigitalTransformation #ElectronicSecurities #DigitalisingCapitalMarkets #D7

A key recommendation of our Unlocking the Power of Securities Tokenisation report last year was that HM Treasury (via the Debt Management Office) should issue a digital gilt using the Digital Securities Sandbox. A digital gilt would demonstrate HM Government’s confidence in Distributed Ledger Technology and the UK's desire to be a global leader in the digital assets landscape. Very pleased to see in today's Spring Budget red book that the Government will continue to examine, and will be engaging with firms on, the possible applications and benefits of applying Distributed Ledger Technology to a sovereign debt instrument to unlock investment in growth through the financial system. Led by our Chair Bob Wigley, the team at UK Finance look forward to continuing our positive engagement with policymakers and our members to further this important initiative. Robert Wigley OStJ, BSc, Hon DBA, FCA Yvonne Deane Harte Alberto Sicari Junayd Azam #securitiestokenisation #capitalmarkets #ukgrowth Report is here: https://lnkd.in/ewk3Y26f HMT Spring Budget 2024: E03057752_HMT_Spring_Budget_Mar_24_Web_Accessible__2_.pdf

🔔 Last Call to Join the Forefront of relevant Financial Innovation – Spots Almost Gone! 🔔 Here are some aspects why I am so excited about the upcoming Point Zero Forum: 🗣 Hear It from the Horse’s Mouth: Engage directly with relevant people driving real change. 🌐 40 Central Banks and Regulators: Direct engagement, not secondary discussions. 🏢 C-Level Access: Dialogue with decision-makers, with the ones who really drive the development and make the difference! 🌍 Global Stage: Insights from a global perspective, not limited to regional views. 📰 Creators of News: AT PZF, we make the headlines, we don't just read them. 🛠️ Meet the Architects of Tomorrow: Connect with those actually building the future, not merely talking about it. 🌎 Be a Part of a Global Community: Join a network of leaders and innovators from around the world. This is your last opportunity to secure a place where the future of finance is being shaped. Don’t miss out! REGISTER AND COME: https://lnkd.in/eaFUDzBk #PointZeroForum #FinancialInnovation #GlobalFinance #Leadership #LastCall #GlobalCommunity Thanks for all your support making that happen: Elevandi Singapore FinTech Festival Financial Times Bloomberg News Goldman Sachs Monetary Authority of Singapore (MAS) Binance Circle iCapital Paxos Ripple Ant International Bybit Cardano Foundation Chainlink Labs Fireblocks Fidelity Digital Assets zeb consulting Emotional Banking Giesecke+Devrient Banking Circle Crypto.com Sygnum Bank Global Ledger and many many more!