The digital transformation of global capital markets may be on the cusp of a breakthrough, according to a senior figure at the Bank for International Settlements (BIS).
Speaking at Money 20/20 in Amsterdam, Morten Bech, centre head for the BIS Innovation Hub in Switzerland, remarked that tokenisation and digitalisation could finally gain momentum after years of stalled progress.
In an “Ask Me Anything” session, hosted by BIS, he noted that, for at least a decade, industry players have been exploring the potential of tokenisation—the process of representing real-world assets as digital tokens on a blockchain. However, despite numerous attempts and promising technological advances, mainstream adoption has remained elusive.
Bech suggested that today’s pathway may take an alternative route.
“Maybe this time it’s different, and we are actually seeing an inflection point,” Bech said, referencing the bustling conference hall filled with firms aiming to piece together the infrastructure needed for a digital financial future.
The BIS has been vocal in its belief that tokenisation will take off, marking a shift toward programmable and composable financial systems. However, Bech cautioned against premature optimism, recognising past false starts and the challenges of replacing an established financial ecosystem.
Even if the technology does take off, Bech estimated that a full-scale transformation could still take a decade. “We have a very gratifying financial system, which in many aspects works fine,” he said, acknowledging that entrenched structures and network effects make sweeping change difficult.
Nonetheless, proponents argue that tokenisation could usher in greater efficiency, transparency, and accessibility in capital markets. While regulatory alignment and technological development remain hurdles, many believe the industry is inching closer to making digital capital-raising a reality.
