Digital Asset, the blockchain solutions provider, has successfully completed a collaborative initiative to tokenise gilts, Eurobonds, and gold. This project, conducted in partnership with Euroclear, The World Gold Council, Clifford Chance, and various financial institutions, aimed to demonstrate how blockchain technology can enhance collateral mobility, liquidity, and transactional efficiency.
The pilot, conducted over June and July 2023, involved 27 participants and 14 Canton nodes, completing 500 transactions across 11 distributed applications. The initiative showcased the potential of tokenising real-world assets (RWAs) to facilitate atomic, real-time transactions using previously immobile assets as collateral. With global gold trading averaging $162 billion daily and significant outstanding issuances of Gilts and Eurobonds, the initiative highlights blockchain’s potential to transform asset trading and liquidity management in financial markets.
Olivier Grimonpont, Head of Product Management, Market Liquidity, Euroclear, comments: “We recognise the immense value in industry experimentation to showcase the advantages of DLT for the market. As we strive to deliver even better and faster collateral mobilisation for our clients, digital technologies like DLT will be key enablers for us to achieve this.”
Kelly Mathieson, Chief Business Development Officer at Digital Asset, adds: “Our work with the pilot participants has demonstrated that tokenised assets can be used with immediate effect to meet intraday margin calls outside of normal settlement cycles, processing times, and time zones. It also demonstrated how the ledger can serve as the legal record and has validated the secured party’s control over the digital twin and real-world assets received as margin or collateral in the event of a counterparty default.”
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