The FINANCIAL — Professional investors want to see improvements in regulatory compliance and custodial services for tokenised assets, new global research* from tokenisation platform Token City shows.
The study, conducted among professional investors in France, Spain, Germany, Switzerland, and the UK who are responsible for around $546.5 billion in assets under management, found around a third (31%) of professional investors are very concerned about regulatory compliance in the market while 60% are quite concerned and just 9% are not concerned.
Moreover, more than half (51%) are very concerned about custodial services for tokenised assets while 24% are quite concerned. Just 22% are not concerned.
The World Economic Forum estimates ** that up to 10 percent of global GDP will be stored and transacted via DLT by 2027 and that tokenized markets could potentially be worth as much as USD24 trillion by 2027.
The research by Token City, which provides the platform infrastructure and services for issuing, managing, and trading Security Tokens by investors, investment funds, portfolios, brokers, and other investment service companies, identified regulation and custodial services as the major obstacles to growth in the market.
Madrid-based Token City’s research shows investors expect a greater focus on regulation with 30% expecting a dramatic growth in the pace of regulation over the next three years.
Recent developments include the European Parliament’s*** agreement with the European Council to launch a pilot programme that will allow financial markets to use blockchain applied to the tokenisation of stocks, bonds and UCITs. Other regulators around the world are laying the foundations for frameworks enabling the creation and exchange of digital asset-backed tokens, with authorities in Switzerland and Singapore leading the way.
Token City’s research found professional investors believe tokenisation could be positive for regulators by enhancing their ability to improve clarity and protection. Around 91% agree that the immutability of data and real-time data held in digital ledgers provides those benefits.
Token City founder and CEO Yael H Oaknin said: “Regulation is vital in all financial markets to protect investors. It is particularly important in the case of a new, growing market such as the tokenisation to provide confidence. That’s why from day one we are and will remain rigorously compliant.”
Token City supports investors and organisations wanting to evaluate the market in a safe and secure way. It provides the platform infrastructure and comprehensive services required to issue, manage, and trade Security Tokens.
