Abstract

Distributed ledger technology (DLT) is driving innovative change by tokenizing assets on programmable platforms, thereby automating financial transactions and improving efficiency. The future of finance is expected to be led by the digital asset ecosystem. To securely trade digital assets on DLT-based platforms, a stable cash settlement asset is required to finalize transactions. While stablecoins and tokenized deposits can be used as settlement assets, they are known to fall short in reliably ensuring monetary singleness and finality of settlement.
Recently, central banks worldwide have been focusing on wholesale CBDCs (wCBDCs), which are risk-free and stable assets, as key settlement assets for digital asset transactions. The Bank for International Settlements (BIS) envisions extending the current two-tier monetary system into the digital era by anchoring it with wCBDCs and integrating tokenized deposits as private money. Central banks and international financial institutions are actively developing new asset settlement platforms anchored by CBDCs and are conducting various projects, experiments, and international collaborations to address asset tokenization.
This report explores the transformative impact of asset tokenization in the digital age, examining its implications and benefits and emphasizing the significance of digital asset trading and settlement platforms. It investigates the ongoing efforts of major central banks and international financial institutions in designing CBDC settlement platforms, conducting experiments, and fostering international cooperation. Additionally, the report reviews future changes to financial infrastructure, key takeaways, and challenges posed by the rise of tokenization and digital asset ecosystems.