Asset Tokenization in Financial Markets 2025

Contents12 Source: World Economic Forum1.5 Settlement assets In a financial transaction, the delivery of an asset (D) typically requires a reciprocated payment leg, whether in cash (the “P” in DvP) or asset (the second “D” in DvD) form. This leg is also referred to as a settlement asset, which is mutually recognized by transacting parties as a final means to discharge obligations. Choosing the right settlement asset involves balancing liquidity and counterparty risks with the speed needed to achieve settlement for the trading scenario. Settlement assets include fiat-backed stablecoins, reserve-backed digital currencies, deposit tokens and wholesale central bank digital currencies (wCBDC).5 Crypto-assets, such as Ether, are used as settlement assets in decentralized exchanges (DEXs) or Layer-2 networks. Note: Reserve-backed money combines elements of both public and private money – while classified here as private due to operation by private entities, it is backed by public funds, namely central bank reserves.— General public — FIs— General public — General public — Ether — Fiat-backed stablecoin— Deposit token — Reserves-backed digital currency*— RTGS systems — Wholesale — CBDC— Bank customers (commercial and retail) — Financial institutions — Financial market infrastructures (FMIs)— Bank customers (commercial and retail)PUBLIC MONEY PRIVATE MONEY Central bank money Reserve-backed money Commercial bank money Non-bank money Crypto-assets Description A central bank liability can be used for settlement purposes in both physical and digital formats.A liability of a licensed non-bank FI or commercial bank backed by reserves in an omnibus account held at a central bank.A commercial bank liability in the form of deposits held at the bank, which can be used for payment purposes.A liability of a non-bank FI that holds a licence to issue e-money and can be used to settle commercial transactions.A native digital asset that is usually the utility token of a programmable ledger and is used to pay for transaction fees. Issuer/operator Central banks Commer cial banks or non-bank FIsCommercial banks Non-bank FIs Minted via blocks Risk Virtually credit risk-free Bankruptcy-remote Carries credit and liquidity riskCarries credit and liquidity riskCarries settlement risk Users ExamplesFIGURE 4 The digital money continuumFoundational key concepts