Economic and Financial Review
Publisher
Central Bank of Nigeria
Keywords
Tokenisation, Assets, Financial system
Abstract
The tokenisation of assets is not the future - it is the present. It is deeply transformative and is offering exciting possibilities for, in particular, financial markets. The tokenisation of assets offers promising possibilities for how capital is raised. Novel fundraising vehicles, such as Security Token Offerings (STOs), provide a higher degree of regulation and transparency for investors. Further, STOs are an efficient method to raise capital from a broader investment pool than it has been possible with traditional fundraising methods. It is, however, still in infancy stage and market adoption will still need time. Despite an exponentially increasing interest in tokenised assets, “traditional” financial institutions and national authorities still approach asset tokenisation with caution. However, countries like Switzerland, well-known for its innovation friendly stance, will help to drive and foster the remarkable potential of tokenised assets.
Publication Title
CBN Economic and Financial Review
Issue
4
Volume
60
First Page
181
Last Page
193
Recommended Citation
Okafor, Peter N. (2022). The Tokenisation of Assets: jurisdictional experiences and the lessons for Nigeria’s financial system. CBN Economic and Financial Review, 60(4). 181 - 193.