According to the digital assets report, the Official Monetary and Financial Institutions Forum, 92% of its respondents anticipate that financial markets will undergo substantial tokenization at some point.
The United Kingdom and the Bank for International Settlements have conducted experiments, and countries have been portraying blockchain and tokenization as the future.
According to a survey conducted by the Official Monetary and Financial Institutions Forum (OMFIF), the majority of respondents anticipate that a significant degree of tokenization will be achieved within the next three years.
A diverse array of market participants participated in the survey, and “92% of respondents anticipate that financial markets will undergo a significant degree of tokenization at some point, although all respondents indicated that it is at least three years away.” The OMFIF conducted a survey of 26 institutions, including treasuries, banks, and asset managers, in Europe, Africa, Asia, and South America.
Countries worldwide have identified blockchain and tokenization as the future. 42% of respondents concur that blockchain will emerge as the predominant financial market infrastructure, as indicated by the survey conducted by the think tank OMFIF.
The UK Finance department announced on Tuesday morning that it had successfully concluded the experimental phase of a tokenization, central bank digital currency (CBDC), and ledger platform. Alongside seven UK Finance members, banks such as Barclays, Citi UK, HSBC, and Natwest participated in the experiment.
The Bank for International Settlements, which is regarded as the central bank of central banks, announced on Monday that 40 carefully selected firms had joined it in an effort to investigate tokenization.
The OMFIF also discovered that 65% of its responders believed that bonds were the most likely to be tokenized. The blockchain is currently in the process of tokenizing bonds. The total value of 14 blockchain bonds issued as of July 31, this year is $1.2 billion, which is nearly equivalent to the $1.7 billion value of 16 bonds issued in 2023.
Wholesale CBDCs, which are digital credentials that are issued by central banks for the exclusive use of institutions, have also been extensively tested.
The report stated, “Our survey indicates that market participants evidently favor wholesale central bank digital currencies over other forms of tokenized cash.”
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