Stefan Grasmann

Legislators and regulators are currently considering how to support and oversee financial market infrastructure that leverages DLT technology. This requires changes to the trading and post-trading infrastructure as well as targeted regulatory changes.

One of the key questions is what form of digital money will be used to settle transactions, i.e., what tokenized instruments will be allowed and fit for purpose? EU regulators seem to prefer wholesale CBDC over stablecoins. This coincides with the additional momentum for wholesale CBDC in the EU and synthetic CBDCs in the UK. However, CBDCs are not the only option – stablecoins and even tokenized money market funds (MMFs) may have a role to play. The emerging US approach will also shape market preferences and is likely to spill over into European policy discussion.

In this regard, this roundtable will bring together policymakers, technologists and financial sector experts to tackle the following main questions:

• What are the lessons learned from recent tokenization trials when it comes to the digital money used for settlement? What are the next steps in Europe and in the UK on developing the payment and settlement layer for tokenization?
• Can stablecoins play a role? What about other versions, like synthetic stablecoins, or tokenized MMFs?
• Are there fragmentation or liquidity risks if the UK or EU are out of step with other jurisdictions?
• How should regulators approach this?

The advent of distributed ledger technology (DLT) is transforming capital markets across the board, from enhancing liquidity across asset classes to enabling instant settlements and powering smart contracts, while artificial intelligence (AI) analytics promise to provide better insights into market risks and opportunities.

Traditional institutions, alongside fintech players, are increasingly playing a role in this transformation, leveraging these technologies to develop innovative solutions that can improve financial processes and identify new opportunities for institutional investors.

This session will gather leaders from exchanges, banks, and digital assets players across the US, Europe and Middle East, to share how technology is reshaping the landscape of capital markets; the emerging opportunities that new technologies and approaches are unlocking within capital markets; and their long-term projections for what the future holds for capital markets.