Digital assets, tokenisation and the future of payments

Written by Sukhy Atwal, Head of Wealth, Pensions and Insurance at ClearBank

The shift from cash to assets is a natural progression, being driven along the way by the increasing digitisation of financial transactions. As more people accept digital assets as a payment method and use them as a store of value, individuals and businesses alike unlock the advantages of a digital economy in the form of faster and lower transaction costs, greater transparency and enhanced convenience. State Street’s recent report on tokenisation and regulation highlights the potential of digital assets, emphasising the need for frameworks that strike a balance between encouraging innovation and safeguarding investor protection. Furthermore, it underscores that a regulated environment can unlock the potential of digital assets by offering a secure and transparent platform for their issuance, trading and use. Digital assets (as a form of payment) are simply an alternative way to pay for goods and services and do not need to mean that cash is no longer available for those who still wish…