With increasing adoption of Blockchain by traditional financial institutions, integrating this technology into well-established systems presents both opportunities and obstacles.
Sandra Roexecutive director of Global Blockchain Business Council (GBBC)recently spoke about these challenges, sharing his perspective on the fundamental work needed to advance blockchain in finance.
Connect blockchain with existing financial systems
Sandra Ro noted that many financial companies are creating tokenized products, such as money market funds and bonds, while also working to link blockchain systems to traditional financial structures.
“Institutions… are inclined to develop tokenized products such as money market funds, bonds and repos,” he stated. According to Ro, these projects aim to make blockchain technologies compatible with each other and with conventional infrastructure, creating a system in which these tools can operate on various financial platforms.
Address industry standards and infrastructure needs
Ro highlighted that the need for uniform standards was a central theme at the recent SIBOS conference. Groups like Swifthe Depository Trust & Clearing Corporation (DTCC), Deutsche Börse and Euroclear They are working to create frameworks to support blockchain development.
In Ro’s view, a critical step for these systems to deliver on their promise is to resolve what she called “the digital cash leg” of tokenized transactions. Addressing this part of the system, he suggested, is essential for technology to bring its maximum value to the financial industry.
The role of regulatory clarity
Ro also pointed to regulatory uncertainty as a challenge to the advancement of blockchain in the financial sphere. “There is a lot of work underway by the industry to scale, but… regulatory uncertainty makes scalability and innovation difficult,” he noted.
Ro highlighted ongoing initiatives, such as the Digital Asset Market Subcommittee (DAMS) from GMAC, which aims to develop coherent definitions of digital assets. This work, he said, can help reduce regulatory confusion and provide a more direct path for the industry’s future progress.
As blockchain continues to enter finance, Ro’s comments reveal that achieving technical interoperability and regulatory clarity will be critical to the future of the industry.
You can also read: Brian Armstrong of Coinbase: The mission of the crypto industry and economic freedom in the US
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