Collateral Tokenization Webinar Takeaways with ISDA

Technology is the obvious enabler of tokenization. But in terms of transformation, the onus is shifting to market participants to explore and adopt the right technologies for their strategic and business use cases. Drivers include cost optimization, intraday liquidity and the ability to bridge traditional and decentralized finance.

Sophie Marnhier-Foy expanded on the technology pillars underpinning this shift:

• Cloud hosting, which provides scalable infrastructure and managed services for optimization.
• Blockchain, which enables real-time settlement and consolidated inventory management.
• Artificial intelligence (AI), which can be leveraged to orchestrate workflows, ultimately allowing predictive allocation and automation for continuous operations.

Sam Edwards pointed to tokenized money market funds as a practical example, noting their potential to reduce friction and unlock operational mobility. He stressed that the costs of not acting (not only the hard costs but also the opportunity costs of not innovating) are rising as funding pressures increase.