Why Digital Assets Are the Future of Finance – Insights Ahead of SFF 2024

As we gear up for the Singapore FinTech Festival 2024 (SSF 2024), where I’m honored to serve as a Featured Ambassador, the topic of digital assets is front and center on the global stage. With institutional interest continuing to grow, we’re seeing a monumental shift in how digital assets are shaping the future of finance.

Based on recent insights from State Street and Northern Trust surveys, institutional players are increasingly seeing digital assets as a cornerstone of financial innovation. According to the research reports, these institutions are no longer just exploring—they are allocating, developing use cases, and integrating digital assets into their portfolios. This growing interest from institutional investors underscores a fundamental transformation in the financial landscape.

Key Market Trends in Digital Assets

• Institutional Confidence is Growing The surveys reveal a growing confidence in digital assets from institutional investors, particularly in areas like tokenization, blockchain infrastructure, and crypto assets. State Street's June 2024 Digital Asset Study indicates that nearly 70% of institutional investors believe that digital assets will be a key part of their portfolios in the coming years. The expansion of tokenization in real-world assets, such as real estate and commodities, is leading this shift. Tokenization allows for greater liquidity and more granular access to investments, which is highly attractive for large institutions.

• Operational Transformation is Underway Institutions are also adapting their internal systems and frameworks to accommodate digital assets. Northern Trust highlights that asset servicing for digital assets is becoming a key area of focus, as institutions seek solutions for custody, settlement, and regulation compliance. This aligns with the push for more robust regulatory frameworks around the world, which aim to ensure investor protection while enabling innovation.
• Blockchain and Tokenization are Redefining Markets Tokenization is transforming how markets operate. By tokenizing assets, institutions can trade and settle more efficiently, often in real-time, reducing friction and operational costs. Moreover, blockchain technology enables greater transparency and traceability, essential for building trust in digital asset markets.

• The Role of AI and Automation As digital assets continue to evolve, the integration of AI and automation into digital asset management is expected to streamline processes even further. From automated compliance checks to AI-driven risk assessment models, the tech stack supporting digital assets is rapidly advancing.

What to Expect at SFF 2024

At the Singapore FinTech Festival, we will dive deeper into these topics through an impressive lineup of sessions focused on digital assets, blockchain technology, and institutional adoption. Some key sessions to look out for include:

• The Rise of Tokenized Assets: What’s Next for Institutional Adoption?
• Building Robust Digital Asset Infrastructures
• Institutional Custody Solutions: What’s New?
• The Future of Tokenized Markets and Real-World Assets

In addition, the festival’s Digital Assets Agenda promises to offer invaluable insights into how financial institutions can seize the opportunities digital assets present, from enhancing operational efficiency to launching new, innovative financial products.

The list of speakers is outstanding:

Join Me at the Singapore FinTech Festival

The conversation on digital assets is evolving fast, and I’m thrilled to be part of this exciting journey. I invite you to join me at the Singapore FinTech Festival to explore these key trends further and to engage with industry leaders shaping the future of finance.

?? Register here: Join me at the Singapore FinTech Festival

See you at SFF 2024!

Image Credits: shutterstock.com / Richie Chan / State Street / Northern Trust