Sibos 2023 has wrapped up, so what did we learn? Our team of blockchain experts returned from Toronto with three digital asset trends that you need to know about.
Below, we highlight the key takeaways that financial institutions can focus on to help enable swift adoption and tech readiness - These trends may well shape the future of blockchain and digital assets.
1. Tokenization: Banking's Strategic Imperative
Tokenization was a hot topic at Sibos. We learned that banks aren't merely experimenting with tokenization; they're investing heavily.
Banks aim to tokenize fixed-income instruments, bank deposits, and stablecoins. The driving forces? Instantaneous settlement, liquidity boosts, and fractional ownership opportunities.
We also heard from many custodians and clearing houses who aren't sitting on the sidelines; they're active players. They're developing secure, compliant digital asset storage solutions. These solutions can manage a diverse range of tokenized assets, meeting the growing institutional demand.
If you’re interested in tokenization, our on-prem Institutional MPC Wallet enables secure, efficient transfers of tokenized assets providing the liquidity of a hot wallet and security of a cold wallet.
2. Private Networks: Banks' Go-To for Blockchain Initiatives
Another big Sibos talking point was around private networks, and how banks are overwhelmingly choosing private-permissioned networks for their blockchain projects.
Banks feel that these networks provide the essential security and control needed for their sensitive financial transactions. Quite a few individuals mentioned that although the market lacks a standard, interoperability remains key. There’s a strong feeling among major players that solutions enabling cross-chain interactions will lead the industry forward.
This aligns with what we have been seeing in the market. It’s worth noting that Blockdaemon has been in this space since 2017 and has been operating private network nodes for years across many clients, including banks.
3. Wallet Technology: Banks Need Control and Scalability
There was virtually unanimous consensus that, for regulated financial firms, controlling cryptographic keys is a must, not a choice.
Wallets that add counterparty risk or can't separate different digital assets are security risks.
Traditional finance has relied on Hardware Security Modules (HSMs) for top-notch security. However, Multi-Party Computation (MPC) is capturing market share. It offers the same security as HSMs but adds better efficiency and flexibility.
If you’re looking for an MPC based solution, we can help with our self-hosted, on-prem MPC wallet. With the flexibility offered by our policy engine, organizations can create tailored policies that meet their specific requirements while maintaining the highest level of security and control over their digital assets.
Blockdaemon Can Help You Navigate the Blockchain Future
Sibos 2023 highlighted key digital asset trends including tokenization, private networks, and wallet tech. For these, and all other web3 needs, Blockdaemon is here to be your guide and partner.
Learn more about Blockdaemon solutions - Reach out today!
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