Tokenisation in global capital markets is expanding, but a forecast says a hybrid model that operates alongside existing financial systems will become the mainstream approach, rather than converting the entire financial transaction process to blockchain.

Fintech News Switzerland reported on Nov. 10 that industry participants from finance and technology, including Boerse Stuttgart Group, Boston Consulting Group (BCG), Temasek Holdings and Fireblocks, expect tokenised capital markets to develop in stages.

The outlook was included in a report summarising a roundtable discussion at the "Point Zero Forum 2026" held in Zurich, Switzerland, in June. Eleven participants from financial institutions and blockchain companies took part in the discussion.

Participants cited settlement efficiency and improved capital utilisation as key advantages of blockchain. Using smart contracts can automate post-trade processing and shorten settlement times. It is also expected to improve fund utilisation by increasing collateral mobility.

They also suggested that issuing digital assets could reduce companies' fundraising costs. The analysis said small and medium-sized enterprises, which have had difficulty accessing traditional capital markets, could particularly benefit.

However, they were cautious about moving all financial functions onto blockchain. Asset ownership records, issuance, settlement instructions and collateral management were seen as suited to on-chain use, but personal information, transaction details, and legal and compliance documents were judged better kept off-chain.

Price discovery and order matching were also seen as favouring existing infrastructure for now, given processing delays and system complexity.

Views diverged particularly on settlement methods. Some preferred on-chain settlement through digital assets such as stablecoins, but other participants argued that links with existing payment networks should be maintained.

In Asia, institutionalisation of tokenised securities is under way. Hong Kong is pursuing a plan to use regulated stablecoins for settlement of tokenised money market funds.

South Korea is also pushing to revise sub-regulations for tokenisation of stocks, bonds and funds. Relevant laws are scheduled to take effect from Feb. 4, 2027.

Participants stressed that for the tokenisation market to expand, interoperability between existing financial networks and blockchain must be secured, and tangible business effects relative to investment must be demonstrated.