The latest survey on #tokenization# at investment banks is out. We often talk about the benefits of stablecoins and digital assets in cross-border payments, but some of their most game-changing benefits will be in the less sexy areas of finance, including collateral mobility and the intra-day repo market. Some interesting takeaways from the @SODApublicmoney report include: 1. Tokenization is not an “innovation team” or “IT team” initiative but rather one from the front office and trading desk. Such initiatives have direct PnL implications, which eliminates the need for “window dressing” FinTech experiments we saw in the past decade. 2. Front offices have active involvement in the design and implementation of such projects. And the budget is coming from the business (not the cute innovation budgets like we saw in previous years). 3. The highest priority use cases in the space of collateral mobility consist of using smart contracts for repo contracts, tokenised bonds for collateral and tokenised deposits for settlements. Trillions of dollars are effectively trapped in the global financial ecosystem every day, on top of the high headcount costs incurred by banks. This is a change from previous years where CEOs or COOs would rather kick the can down the road as they would never see the benefits during their tenure. 4. Most banks are still at the early stages but have a defined strategy. When it comes to clients, the biggest challenge remains tech integration (not regulatory uncertainty, as was the case in previous years). 5. An increasing percentage of clients are happy to pay a pricing premium if the benefits are explained. This is also different from previous years where the banks were simply viewing this as an internal cost reduction exercise. This report is worth reading for anyone at the intersection of TradFi and tokenization and interested in the “less sexy” parts of digital assets. Full report is available here: Sponsored by @CantonNetwork