Banks are working to consolidate stablecoins and tokenized forms of more traditional financial instruments into a single integrated package to meet growing institutional demand for multi-asset flexibility.
Rather than waiting for a single winner to emerge, large asset managers and corporate treasuries are demanding a multi-instrument setup in which stablecoins, tokenized bank deposits, and tokenized money market funds all operate on the same infrastructure.
“The demand from institutional clients is constant: they are not waiting for a single instrument to prevail,” Thomas Eichenberger, chief strategy officer and deputy group CEO of Switzerland-based digital asset bank Sygnum, told CoinDesk on Thursday.
“They are asking how tokenized deposits, regulated stablecoins and tokenized money market funds can be combined and made interoperable, so that a treasury function can move between them – authorized settlement, 24/7 cross-border flows, yield with on-demand liquidity – within a regulatory framework they already trust,” he added.
Sygnum, which describes itself as the world’s first digital asset bank, late last year partnered with Swiss banking powerhouse UBS and PostFinance, a subsidiary of the Swiss public post office, to test blockchain payments between institutions on Ethereum.
