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“The case for digital assets isn’t that the existing model doesn’t work. Rather, the argument is that blockchain‑based assets unlock additional capabilities.” |
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Digital assets are moving beyond experiment and into institutional reality. Tokenised money market funds, digital cash, and on‑chain representations of traditional assets are no longer theoretical – they are live, regulated, and beginning to influence how capital is allocated, settled and mobilised.
In this Q&A with Katey Neate, Global Head of Investor Solutions at BNY, hosted by Colm McDonagh, CEO of Insight Europe, we explore:
- What digital assets actually are: From cryptocurrencies and stablecoins to tokenised deposits, CBDCs and tokenised real‑world assets.
- Why institutions are engaging now: How tokenisation can improve settlement speed, liquidity management, collateral efficiency and portfolio agility – without changing underlying investment economics.
- Tokenisation in practice: Why money market funds and highly liquid instruments are the “foothills” of adoption, and how private markets are beginning to follow.
- Programmability and portfolio design: How smart contracts enable automated cashflows, conditional payments and more responsive portfolio management.
- Risk, regulation and governance: The additional risks introduced by operating on‑chain – and why blockchain choice, custody, compliance and reputational considerations matter.
- Hype versus reality: Why a long‑lasting hybrid world of on‑chain and off‑chain finance is the most realistic path forward.
Digital assets are not about replacing existing financial markets overnight. But by changing the plumbing – settlement, reconciliation, cash mobility and collateral use – they have the potential to materially alter risk management, liquidity dynamics and operational efficiency for institutional portfolios.
For investors, asset managers and asset owners alike, understanding where real utility is emerging is becoming increasingly important.
