Rethinking our view of assets and transactions can lead to remarkable benefits: a common form of representation for digital assets is possible across asset classes, and a single digital operating model is practical and achievable as a result. This will deliver transformative improvements in financial products both for investors and for the issuers of capital.
This paper describes an opportunity for radical change, based on an optimised approach to digital issuance. The paper seeks to show how rethinking our view of assets and transactions in a digital context can lead to remarkable benefits: a common form of representation for digital assets is possible across asset classes, and a single digital operating model is practical and achievable as a result. This will deliver transformative improvements in financial products both for investors and for the issuers of capital.
The Digital Issuance papers arose from two influences: widespread industry discussions on digitisation, and practical experience in the implementation of tokenised assets and cash. The project was formed to develop a better model for assets and transactions in a digital world, and to promote debate on its optimal form.
It was clear from the discussions across the industry that the potential for further enhancement of conventional market infrastructure was limited: senior players expressed that view strongly and consistently. Digitisation was recognised as a potential game-changer, which could release an order of magnitude improvement in the economics of investment. The question was how to ensure that this potential was fulfilled. Replicating current operating models, and applying digital solutions to existing processes, seemed unlikely to maximise payback. A rethink was required.
As the Design Lead for FundAdminChain, a prominent digital infrastructure for funds, the author has direct experience of the challenges faced in implementing digital assets and cash, even where those are just token forms of existing assets and cash. Mandating the existence of current regulated entities, roles and processes in a digital world threatens the elimination of benefit, and a digital replay of current issues. Again, a rethink was required.
The Digital Issuance papers are the result of that rethink. Sponsors were engaged, primarily to support publication, launch and distribution of the papers. A wide range of reviewers was engaged to critique and validate the papers, and many senior players gave their time and attention to enhance the quality and applicability of the material. The sponsors and reviewers are identified under the ‘Contributors and Sponsors’ tab. While there has been widespread engagement and broadscale contributions, the project has been run wholly independently, with no editorial control in the hands of sponsors or reviewers.
Digital Issuance Papers Available to Download:
