One token to rule them all – lower south of general tokenization of the economy, many trends are indeed observable. First of all, there are the projects around a central bank digital currency (MNBC) which will develop all over the world. There are also different forms of stablecoins Backed by various assets such as precious metals, natural resources or banking assets. And the youngest in the family is this concept of deposit token I imagined within the Project Guardian in Singapore. What does it consist on ? And why the Swiss bankers already love it? Response to follow.
An idea that comes from Singapore, in collaboration with JP Morgan and Olivier Wyman
The idea of this new type of token was born last year within a project led by the monetary authority of Singapore (AMS). You Project Custodian, that’s its name, it’s a collaborative initiative with the financial sector. It aims to develop apps Concrete tokenization of financial assets and DeFi within a legal framework. On note found JP Morgan Chase & Co.the greatest American, but also Olivier Wymanwhich is a firm member of the American Strategic Council.
The idea is relatively simple because it consists of transformer a deposit of money in a bank in a digital activation. Then to program different characteristics using a smart contract on a blockchain. For its defenders, the deposit token is the perfect compromise enters on one side a stablecoin issued by a private company. With the potential problems that come with it. And on the other hand, to unite MNBC guaranteed by the supreme monetary authority of a country. With the risks inherent in this form…
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The Swiss Bankers Association really likes the idea
The Swiss Bankers Association has therefore just published a white paper which takes up the idea set out above. But with sauce Swiss. The main lines are taken up with this new form of stablecoins which would therefore be backed by deposits in Swiss banks. And it will not surprise anyone that these deposits represent colossal sums and that they are therefore at the heart of the new potential system:
“Deposits already play a central role in the implementation of central bank monetary policy. If this is to remain the case in a tokenized financial system, a digital Swiss franc should resemble conventional deposits as closely as possible, at least from an economic point of view. »
White paper of the Swiss Bankers Association published in March 2023
Them apps For this new type of token, there are three major and three varieties. Experts first imagine that it could serve as a means of payment. Especially when acquiring important assets such as cars or real estate through a transfer of ownership programmed. But they also plan to put them into practice when buying bonds, stocks or financial products for automatique the payment of dividends, coupons or interest.
Several technical possibilities but only one satisfactory
In order to set up such a project, the bankers imagined different possibilities (comparative table above). Initially, it was requested that each bank be able to do its own deposit token In are coins. But for legal, but also economic reasons, this is a priori excluded.
Suddenly, the idea that is unanimous is the following. It is about creating a special purpose vehicle (SPV) – i.e. a simplified company form – owned jointly by all participating banks. cell requiring mutualise the underlying assets and to give more solidity and readability to the project.
These deposit tokens They are currently at the project stage. But the underlying idea is making its way into the global economy. The world’s major banks are already thinking about the next world and considering simplifying what is now called the tokenization financial assets. and them deposits are therefore today also affected by this financial revolution. And Switzerland is far from being the only country to experiment!
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