Banks are focusing on pulling stablecoins and tokenized forms of more traditional financial instruments into one integrated package to meet growing institutional demand for multi-asset flexibility.
Instead of waiting for a single winner to emerge, large asset managers and corporate funds are demanding a multi-instrument setup where stablecoins, tokenized bank deposits and tokenized money market funds all run on the same infrastructure.
“Demand from institutional clients is consistent: they are not waiting for a single instrument to prevail,” Thomas Eichenberger, chief strategy officer and vice group CEO at Switzerland-based digital asset bank Sygnum, told CoinDesk on Thursday in an email.
“They are asking how tokenized deposits, regulated stablecoins and tokenized money market funds can be combined and made interoperable so that a finance function can move between them – permitted settlement, 24/7 cross-border flows, returns with on-demand liquidity – under a regulatory framework they already trust,” he added.
Sygnum, which describes itself as the world’s first bank for digital assets, partnered late last year with Swiss banking powerhouse UBS and PostFinance, a subsidiary of state-owned Swiss Post, to test blockchain payments between institutions on Ethereum.
