Tokenized Assets, Distributed Ledgers Could Save Finance Billions: GFMA

Widespread adoption of tokenized assets and blockchain in global securities trade seems far off, but a top industry body appears confident

article-image

katjen/Shutterstock modified by Blockworks

share

Distributed ledger technology (DLT) such as enterprise blockchain could unlock $20 billion in annual savings across global clearing and settlement costs.

That’s according to a report from the Global Financial Markets Association (GFMA) in collaboration with Boston Consulting Group and two other law firms. The GFMA is a global body representing interests of capital markets participants and stakeholders.

Its report evaluates opportunities and risks associated with settling global trade on DLT-based systems.

Despite the promising outlook, the GFMA acknowledged widespread adoption of DLT in securities markets has yet to occur, largely due to a lack of institutional interest alongside poor liquidity and risk management.

Investor demand for securities running on DLTs is likely to hinge on fixed-income offerings (corporate bond markets), and tokenized “illiquid and private asset classes like investment funds.”

“The global value of tokenized illiquid assets is estimated to be worth about $16 trillion by 2030, from a base of [around $0.3 trillion] today,” the report said. “New instruments (e.g., tailored frequency income payments) through product innovation may also act as a key value driver to serve client needs.”

DLT is a broader term that encompasses various decentralized technologies, while blockchain is a specific implementation of DLT with differing governance, consensus mechanisms, scalability and use cases.

Adam Farkas, GFMA chief executive said DLT holds growth potential and calls for a regulatory framework supporting stability, responsible innovation and fair competition.

“Policymaking should focus on creating a regulatory framework that supports financial stability and responsible innovation in digital asset markets,” Farkas said in a statement.

The executive also urged officials to “find a way forward” ensuring stability and protections, while also allowing the industry and wider economy to grab hold of the benefits the nascent tech promises.

Australia’s planned DLT overhaul of its primary securities exchange is perhaps the most prominent attempt at running a major settlement system on the technology.

The ASX ultimately canned the idea late last year after spending $170 million.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Silk Road founder Ulbricht made a triumphant return to the Bitcoin Conference, 10 years on from sentencing

article-image

A Blockworks Research report looked at who could take up some of the marketshare in the launchpad space

article-image

Business-to-business stablecoin payments are on the rise, per a report from Artemis, Dragonfly and Castle Island

article-image

Crypto continues to do its thing: incentivizing behavior

article-image

Kraken will soon offer Backed ‘xStocks’ as Solana tokens

article-image

In a unanimous decision, the US Court of International Trade has ruled that Trump’s IEEPA tariffs are unlawful