Tokenized Stocks Put Banks’ Round-the-Clock Operations to the Test
The expanding market for blockchain-based exposure to U.S. stocks and exchange-traded funds is creating a new operational challenge for financial institutions. Longer trading hours and simpler asset transfers offer opportunities, but they also increase the importance of pricing, liquidity and asset recovery when traditional markets are closed. The pace of adoption will depend on the systems…
The growing market for blockchain-based exposure to U.S. stocks and ETFs is posing new operational challenges for financial institutions. While these digital assets offer benefits like round-the-clock trading and simplified transfers, they also heighten the significance of pricing, liquidity, and asset recovery when markets are inactive.
Adoption rates will hinge more on the support systems in place than the blockchain technology itself. In discussions with Korea IT Times on November 2, Flowdesk CEO Guilhem Chaumont highlighted that banks and hedge funds maintain a competitive edge in tokenized markets due to their regulatory status, financial strength, and operational expertise.
However, the complexity of managing multiple counterparties across globally open markets adds another layer of intricacy. Flowdesk specializes in providing liquidity and OTC trading services for digital assets, projecting that stocks, ETFs, and other liquid assets will transition onto blockchain infrastructure within a four to five-year timeframe, subject to regulatory approval and institutional risk assessments.
Written by urgent.news from Korea IT Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
