Asset Tokenization in Financial Markets 2025

Contents54 The newly elected US administration has signalled a pro-digital assets stance, which indicates progress towards integrating digital assets into traditional finance.164 Hong Kong is advancing bond market tokenization, with the SFC and HKMA forming a task force to develop a roadmap for bond and FX market infrastructure, including tokenized issuance and trading – marking a key step towards institutional adoption of digital assets.165 Lastly, in the UK, the Financial Conduct Authority has recently pledged to support fund tokenization as part of its 2025–2030 goals.166 Source: World Economic ForumFIGURE 17 Policy and digital asset regulatory developments (2019–2024) 2019 2020 2021 2022 2023 2024 Blockchain Law I: Recognized DLT-based securities transfers (Luxembourg) Token and Trusted Technology Service Provider Act (TVTG) (Liechtenstein) Cayman Islands' Virtual Asset (Service Providers) Act (Cayman Islands)Swiss law amended to accommodate DLT (Switzerland)FINMA guidance on blockchain and financial services (Switzerland) Cayman Islands Monetary Authority guidance (Cayman Islands)Blockchain Law II: Enabled DLT-based issuance accounts (Luxembourg)UAE VARA established in Dubai (United Arab Emirates) British Virgin Islands’ Virtual Assets Service Providers Act (British Virgin Islands)UK’s Financial Services and Markets Act 2023 (United Kingdom) Dubai’s VARA issues comprehensive VASP framework (United Arab Emirates) EU Markets in Crypto- Assets (MiCA) regulation (European Union)EU DLT Pilot Regime (European Union) Blockchain Law III: DLT securities as financial instruments (Luxembourg)MAS updates Payment Services Act for digital assets (Singapore)Considerations