GFMA

GFMA has released a new report, The Role of Digital Money in Capital Markets, examining how emerging forms of digital money - tokenized deposits, deposit tokens, wholesale CBDCs, and stablecoins - are being applied across securities settlement, repo and securities finance, and derivatives margining. Drawing on the practical experience of leading global institutions, the report highlights both the real progress already underway and the regulatory, infrastructure, and governance challenges that must be addressed to enable safe, scalable adoption at scale. Key takeaways include: • Tokenized deposits are emerging as the near term instrument of choice for capital markets settlement • wCBDCs offer a low risk settlement asset, though timelines remain uncertain • Stablecoins bring unique capabilities but face significant regulatory hurdles for institutional use As tokenized securities and real-world assets become more prevalent on blockchains, demand for digital money that can settle those assets will grow in parallel. Current capital market use cases reflect a balance: the likely primacy of tokenized deposits in the near-term, alongside the potential for stablecoins to play an important role if key challenges are addressed. #DigitalMoney #CapitalMarkets #Tokenization #Payments #MarketInfrastructure #GFMA #FinancialServices

AFME is shining a light on regulatory complexity in Europe’s financial services sector. Over the past five years, the EU adopted more than 13,000 new acts — nearly four times the number in the U.S. Follow their campaign to explore the facts behind the numbers.

The arrival of Quantum Computing is closer than many realise and has the potential to completely undo existing encryption safeguards. To keep cyber criminals and others malicious actors at bay, banks are thinking ahead and putting in place Post Quantum mitigation. Many institutions are working closely with policymakers and regulators to ensure a safe and orderly migration. Today, GFMA sheds light on these efforts with the launch of our latest report, "Quantum Migration: Mapping the Emerging Landscape", which provides an overview of: 🔹 the risks associated with Quantum; 🔹the timescales by which these risks will arise and the potential impact to banks; 🔹the Quantum Migration Plans which industry players are adopting. The report highlights the need for robust action within the next 2–3 years to prepare for the 2035 regulatory cut-off. This proactive approach will not only address quantum risk, but also create an opportunity to strengthen crypto-agility across systems and operations. GFMA will continue working with industry partners to demystify quantum technology — a topic too often seen as theoretical or academic — and to support a secure and coordinated transition. For further information, contact Marcus Corry or Scott Goodwin. Access the report here: https://lnkd.in/eu_byFbb

GFMA is pleased to be a part of a coalition of leading global financial trade associations, with Boston Consulting Group (BCG), Ashurst and Sullivan & Cromwell LLP as technical advisors, who issued a letter to the Basel Committee on Banking Supervision (BCBS) urging a pause and recalibration of the Cryptoasset Exposures Standard (SCO60) and a comprehensive report, “Impact of DLT on Capital Markets, Ready for Adoption, Time to Act”, highlighting the transformative potential of Distributed Ledger Technology (DLT) in capital markets.   A data-driven analysis challenges outdated capital requirements, highlighting evolved risk management practices and pushing for redesign of regulations, in line with fostering innovation via a risk-based approach with the principle of "same activity, same risk, same regulation" and "technology neutrality".   The Impact of DLT on Capital Markets report illustrates how tokenisation and DLT are reshaping securities issuance, collateral management and fund operations.   An industry view of the current and future ecosystem, incorporating new market data, evolving regulatory developments, and banking use cases to inform strategic positioning, highlights why it is critical for banks to be actively involved in shaping the tokenized financial future for the benefit of counterparties and clients globally. Read the report here: https://bit.ly/4luW5Id