KPMG and the Singapore FinTech Association (SFA) have jointly released The Asset Tokenization C-Suite Playbook 2024, providing valuable insights and guidelines for decision-makers in the field of tokenization. InvestaX’s Co-Founder and General Counsel, S. Alice Chen was privileged to be a contributor to the research of the publication.

For those new to the tokenization industry and/or seeking reliable information on the subject, we highly recommend reviewing this publication here. 

In this article, we unpack their key findings and insights of The Asset Tokenization C-Suite Playbook 2024, offering you an overview before exploring the details further.

About The Authors Of The Publication

KPMG in Singapore is part of KPMG - a global organization of independent professional services firms providing Audit, Tax, and Advisory services. KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world.

Singapore FinTech Association (SFA) is a cross-industry, non-profit initiative intended to be a platform designed to facilitate collaboration between all market participants and stakeholders in the FinTech ecosystem.

What Does The Asset Tokenization C-Suite Playbook 2024 Cover?

The report seeks to offer a comprehensive examination of asset tokenization and the main factors driving its growing uptake. Its body content is organized as follows: 

• Tokenization fundamentals
• Why tokenize assets?
• Asset tokenization process
• C-suite decision framework
• The tokenization adoption journey
• Case studies for tokenization of real assets, featuring InvestaX's art collectible tokenization project
• Q&A with subject matter experts

Notable Insights From The Asset Tokenization C-Suite Playbook 2024

#1: Why tokenize?

Tokenization harmonizes traditional investments with modern technology and brings liquidity to traditionally illiquid markets while offering broader ownership opportunities.

#2: The migration to digital asset 

Institutional investors have expressed significant enthusiasm for digital asset investments, with 88% actively advancing their plans and 91% expressing interest in investing in tokenized products, according to a recent survey of 271 institutional investors by BNY Mellon.

#3: Diverse tokenizable assets 

Various types of assets can be tokenized, including tangible assets such as real estate and commodities, intangible assets such as carbon credits and intellectual property rights, financial assets such as stocks and bonds, and fiat money.  

#4: The market opportunities

The asset tokenization market for illiquid assets such as real estate, private equity, bonds, commodities, and financial assets, represents a multi-trillion-dollar opportunity. 

#5: Singapore, Hong Kong S.A.R, and Switzerland lead in the Enabling Environment Rating for asset tokenization. 

#6: Ask strategic questions before embarking on a tokenization project

KPMG recommends a C-suite checklist for embarking on tokenization and positive affirmation across all items signals the tokenization initiative’s viability and potential success. Some key questions to be answered include:

• Is there a market demand for the tentative tokenized assets?
• Will tokenization contribute to a positive ROI for the company?
• Asset tokenization involves heavy technology infrastructure and capabilities. Will we self-build, partner for, or purchase technology capabilities?

#7: The challenges?

The adoption of asset tokenization introduces four primary challenges:

• Regulatory complexity
• Uncertain legal claims
• Technical challenges
• Trust deficit

#8: Fortunately, the industry is addressing these challenges

Regulatory authorities are progressively enhancing regulatory frameworks and offering clearer guidance around digital assets, aiming to fill gaps in existing legislation.

Meanwhile, on the technical side, technical standards and implementations are increasingly converging, making technology more compatible and easier to use.

Final notes

The Asset Tokenization C-Suite Playbook 2024 presents an exhaustive examination of asset tokenization and provides essential guidance for decision-makers embarking on asset tokenization projects.

For those new to the tokenization industry and/or seeking reliable information on the subject, we highly recommend reviewing the full version of The Asset Tokenization C-Suite Playbook 2024. 

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