Why tokenization is gaining momentum

Yeah, I think the single word I would use is convergence.

This time round, it's not about crypto price speculation, nor is it about hype around any one asset.

It's being driven by genuine market structure transformation, where participants, assets, and cash are finally coming together on the same rails to drive real commercial outcomes.

The second driver we're seeing is regulatory clarity.

Policy direction has sharpened in several major markets, and that is what gives institutions the confidence, as you rightly said, to stop piloting and start moving into production.

The third, and the one people underestimate, is the cash leg.

On-chain money is becoming credible through regulated forms like tokenized commercial bank deposits, such as our very own JP Morgan coin, and that matters enormously because tokenized assets cannot scale without a trusted settlement asset and true delivery versus payment.

No cash leg means no market.

And all of this is landing at a moment when higher rates have put a hard price on idle liquidity.

Trapped cash, collateral efficiency, settlement timing, and balance sheet optimization are senior management and board-level concerns, which is exactly why cross-border, always-on, multi-currency settlement has gone from a niche idea to a commercial imperative.

For us at Connexus, none of this changes our long-term thesis.

It just means that the market is validating our ideas faster because the whole ecosystem is now coming on-chain at the same time.

Thanks, Olly.

That all makes complete sense.

A couple of other things I would add to that.

I think the growth of stablecoins has also been a really strong factor at play here.

It's not only fueled some of the growth and development in digital cash and payments that you touched on, but is also a driver now we're seeing of demand for tokenized yield generating products like money market funds.

And then I think the other area of development that we've seen as a bit of a driving force here is the emergence of new players in the ecosystem.

So fintechs that are increasingly getting expanded regulatory approval.

So these could be crypto fintechs or crypto native fintechs.

and becoming now, again, much more prominent players in the servicing space.

And those aren't organizations that we're hearing about or talking about 12 months ago, but most of our clients will now understand what a tokenization or securitization service is.

So I think that imagine the stable coins have also been really big contributors to that.