The OECD has published a report on the tokenisation of assets and potential implications for financial markets. The report:
- examines the benefits of asset tokenisation and the challenges to its wider adoption;
- analyses the potential disruptive effect on trading, liquidity, pricing, clearing and settlement;
- highlights the increased importance of a trusted and credible central authority in a tokenised environment (such as a custodian);
- sheds light to the possible necessity for a tokenised form of central bank digital currency or stablecoin for the payment leg of security settlement on DLT-based trading venues; and
- discusses the policy implications of tokenisation for financial markets.