The U.S. needs to act fast to preserve its advantage in the ‘tokenization’ of our financial infrastructure.
The most important financial market in the world, the U.S. Treasury market, is a government market.
The U.S. needs to act fast to preserve its advantage in the ‘tokenization’ of our financial infrastructure. … Bitcoin and other novel “tokenized” assets—so called because ownership is documented as a unique digital token on a ledger such as blockchain—recently reached more than $3 trillion in total value
Tens of billions of dollars of tokenized assets change hands daily on markets that operate seamlessly around the clock. The nascent cryptocurrency market is the tip of the financial-information technology iceberg. Below the water’s surface lie vast, interconnected payment networks and credit and securities markets that exceed hundreds of trillions of dollars in asset value. We all use these markets and depend on them, but they are ripe for functional change.
While securities trading and other financial transactions may appear instantaneous, many back-end processes still move at a snail’s pace in rigid sequences set decades ago. A mortgage payment isn’t completed when the funds leave the homeowner’s bank account. Those funds have many hands to go through before they come to rest, days or weeks later. Through tokenization, many of these cumbersome and costly processes can be streamlined with better market information, greater certainty and enhanced security.
The potential efficiency improvements to the current system are enormous, including billions of dollars annually in reduced frictions and increased consumer choice. End-to-end tokenization of sovereign currencies, securities, loans, real estate, mortgages, pledges, and related payments and credit is a once-in-a-generation opportunity for both entrepreneurs and nimble incumbents. It is also an existential threat to those who are slow to adapt.
on markets that operate seamlessly around the clock. The nascent cryptocurrency market is the tip of the financial-information technology iceberg. Below the water’s surface lie vast, interconnected payment networks and credit and securities markets that exceed hundreds of trillions of dollars in asset value. We all use these markets and depend on them, but they are ripe for functional change.
While securities trading and other financial transactions may appear instantaneous, many back-end processes still move at a snail’s pace in rigid sequences set decades ago. A mortgage payment isn’t completed when the funds leave the homeowner’s bank account. Those funds have many hands to go through before they come to rest, days or weeks later. Through tokenization, many of these cumbersome and costly processes can be streamlined with better market information, greater certainty and enhanced security.
The potential efficiency improvements to the current system are enormous, including billions of dollars annually in reduced frictions and increased consumer choice. End-to-end tokenization of sovereign currencies, securities, loans, real estate, mortgages, pledges, and related payments and credit is a once-in-a-generation opportunity for both entrepreneurs and nimble incumbents. It is also an existential threat to those who are slow to adapt.
More than 100 US Banks Observe Tassat Group Execute the First Real-Time Digital Payment Between Two Banks Using Blockchain Technology
The Network will enable banks of all sizes to compete in a $25 trillion B2B market that still conducts more than 65 percent of all payments using paper checks but that is rapidly becoming digitized. The Network also is designed to support decentralized finance, smart contracts, T+0 settlement and foreign exchange transactions.
“Today’s transaction and the first-ever real-time Digital Interbank Network represent historic milestones in U.S. banking history, enabling banks to provide real-time blockchain-based payments and banking services that will transform how the banks and their customers do business,” said Tassat Chairman Kevin R. Greene.
“The Network bridges the gap between traditional banks and the power of blockchain technology,” said Greene. “It will enable banks of all sizes to become fintech powerhouses well-equipped to serve their clients in today’s fast-paced, ever-changing digital marketplace.”
Tassat CEO Ron Totaro added, “The features and functionality of the Digital Interbank Network are based upon input received over the last three years from banks from around the country and from current clients of TassatPay™, our flagship intra-bank payments platform that currently uses blockchain technology to facilitate secure, instantaneous real-time payments 24/7/365 within a bank.”
The age of wealth accumulation is over
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