Banks are focusing on bringing together stablecoins and tokenized forms of more traditional financial instruments into an 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 where stablecoins, tokenized bank deposits, and tokenized money market funds run on the same infrastructure.
“Demand from institutional clients is consistent – they are not waiting for any one instrument to prevail,” Thomas Eichenberger, chief strategy officer and deputy group CEO of Swiss-based digital asset bank Sygnum, told CoinDesk in an email on Thursday.
“They are wondering 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 (permitted settlement, 24/7 cross-border flows, yield with on-demand liquidity) under a regulatory framework they already trust,” he added.
Sygnum, which describes itself as the world’s first digital asset bank, partnered late last year with Swiss banking powerhouse UBS and PostFinance, a subsidiary of state-owned Swiss Post, to test blockchain payments between institutions on Ethereum.
