In the ever-evolving world of finance, 2023 has emerged as a pivotal year, showcasing the transformative power of blockchain through the lens of Asset Tokenisation (AT). This blog covers the key events of the year, unravelling the impact of these developments on the financial landscape.

Infographic from WhiteSight - A FinTech Research Company

Jan to Nov 2023: A Snapshot of Tokenisation Events

January: Goldman Sachs Launches GS DAP on Canton Blockchain

Goldman Sachs kicked off the year by introducing GS DAP, a tokenisation platform on the Canton blockchain, setting the stage for accelerated asset tokenisation initiatives.

February: Hong Kong's Green Bonds Take Center Stage

The Hong Kong Monetary Authority collaborated with major financial institutions, including Bank of China, Credit Agricole, Goldman Sachs, and HSBC, to issue tokenised green bonds, showcasing a commitment to sustainable finance.

April: VP Bank Expands Digital Asset Custody with Metaco

VP Bank joined forces with Metaco to broaden its digital asset custody and tokenisation services, paving the way for digitising physical collectables like art and jewellery.

May: OCBC Partners with ADDX for Tokenised Equity-Linked Notes

OCBC entered a strategic partnership with ADDX, marking a milestone in tokenisation as they distributed tokenised equity-linked structured notes globally, democratizing access to exclusive investments.

June: Banco Inter, Microsoft, and 7COMm Collaborate on Treasury Bond Tokenisation

A powerful trio consisting of Banco Inter, Microsoft, and 7COMm embarked on the tokenisation of treasury bonds in Brazil, showcasing the global reach and collaborative spirit of asset tokenisation.

July: Sony Bank and Sumitomo Mitsui Trust Bank Embrace Tokenised Security Tokens

Sony Bank and Sumitomo Mitsui Trust Bank joined forces with Securitize, facilitating the public offering and issuance of security tokens, a testament to the growing role of blockchain in traditional finance.

August: Prontoblock and Mercantile Facilitate Tokenised Commercial Paper

Prontoblock partnered with Mercantile to assist MBI clients in buying and issuing tokenised commercial paper, demonstrating the versatility of asset tokenisation across various financial instruments.

September: Global Banking Giants Embrace Tokenisation as Emerging Markets Also Catch Up

Deutsche Bank partnered with Taurus, while Citi unveiled Citi Token Services for cash management and trade finance, underlining global banking leaders' widespread adoption of tokenisation. Furthermore, Xstate secures approval for a regulatory sandbox to test its asset fractionalization model in the 400 billion dollar real estate market of Pakistan.

October: J.P. Morgan Introduces Tokenised Collateral Network

J.P. Morgan introduced its in-house blockchain-based application, the Tokenised Collateral Network (TCN), streamlining the tokenisation of traditional assets for secure on-chain settlements.

November: Swiss National Bank and HSBC Embrace Tokenisation

The Swiss National Bank (Central Bank of Switzerland responsible for the nation's monetary policy and the sole issuer of Swiss franc banknotes) partnered with SDX and six banks to create a tokenised version of the Swiss franc, while HSBC (who manages USD 600 billion assets) leveraged blockchain to digitise gold assets, marking a significant stride in asset tokenisation.

Xstate's Role in Asset Tokenisation

Amidst this surge of tokenisation events, Xstate stands out as a pioneer in asset fractionalisation and tokenisation. With a focus starting on real estate in Pakistan, Xstate's blockchain-based platform offers a shariah-compliant solution, making it easier and affordable for everyone, from blue-collar workers to 1% elites, to own a piece of land.

Impact and Future Outlook

As we reflect on the transformative events of 2023, it's evident that asset tokenisation is not just a trend but a fundamental shift in the financial paradigm. The collaborative efforts of financial institutions, coupled with regulatory support, showcase the growing acceptance and integration of blockchain technology. As we look ahead to 2024, the landscape of asset tokenisation promises continued innovation and transformative shifts, making it a space worth watching.