Building a digital asset infrastructure

Written by Breige Tinnelly at Archax and Martin Watkins at Montis Group

“The Institutions are coming” was the theme in digital assets throughout 2022. Now in 2023, global banks and asset managers are firmly here, and during this year have been moving on from ‘proof of concepts’ to real production. This move has increased the demand for a digital asset infrastructure that is institutionally fit for purpose. Participation by traditional financial institutions (FIs) evokes confidence in the benefits to be derived from adopting blockchain and DLT, including increased transparency and auditability, immutable records of transactions, clear audit trails for regulators, streamlined corporate actions, as well as opening up access for investors and tapping into global distribution. The underlying tech also enables efficiencies in processes, particularly for settlement and post- trade activities, and lays a pathway for innovations and new types of products in digital form. The anticipated impact of the FIs coming into the space has been regarded as the inflection po…