What Actually Matters in Digital Assets – A Reality Check

This Autumn’s industry events schedule has demonstrated just how far digital assets are moving from hype into reality. From Token2049 in Singapore to Sibos in Frankfurt and Digital Assets Summit in London, to name just a few key examples, industry conversations have shifted decisively from speculation and slogans to the business of building. Institutional adoption, real-world asset tokenisation and regulatory convergence are all dominating conference agendas, reflecting what has been happening on the ground for the past two years. The question now isn’t whether digital assets will integrate into finance but rather how they’ll do so safely, efficiently and at scale.

From Pilots to Production

Of all the locations, perhaps one jurisdiction really stands out. What is unique about Singapore’s approach is its ability to combine bold experimentation with rigorous oversight. Initiatives like Project Guardian, backed by the Monetary Authority of Singapore (MAS) and more than 40 global financial institutions, have transitioned tokenisation from proof-of-concept to production-grade reality. The Global Layer 1 initiative is also further reinforcing Singapore’s role as the connective tissue between public and private blockchain infrastructure.

This was the subtext running through many Token2049 panels: the end of “test lab” tokenisation and the arrival of real, regulated markets. As OCBC’s Steven Hu put it, “A proof of concept proves the technology; deployment in production proves governance and trust.”

Post-FTX: The Institutional Reset

Three years after the collapse of FTX, institutions are still rebuilding trust in digital assets but this time via products not simply via relationships. As GSR’s Chuan Jin Fong notes, “FTX was the industry’s wake-up call. It exposed how little attention had been paid to counterparty credit risk.”

That wake-up call gave rise to one of the most significant infrastructure innovations since the advent of digital asset custody: the development of off-exchange settlement. By allowing institutions to keep assets with a regulated custodian while trading on exchanges, off-exchange settlement drastically reduces counterparty exposure – something OKX Singapore’s CEO Gracie Lin calls “a game-changer for enterprise risk teams.” Custodians, banks and exchanges are aligning operational standards for mirrored collateral accounts and bankruptcy-remote structures.

Tokenisation Finds Its First Real Traction

Tokenisation is no longer a buzzword but is becoming shorthand for results and Singapore’s role in that progress can’t be overstated. As Tokeny’s Daniel Coheur puts it, “We’re moving beyond experimentation. Proof-of-concepts are now becoming live services.”

The first wave of real-world traction is coming from tokenised bonds and tokenised money market funds (tMMFs), both assets that combine traditional finance familiarity with the operational efficiency brough about by blockchain. According to Boston Consulting Group, tokenised RWAs now total more than $22 billion, triple their value just two years ago.

Why does it matter? Because tokenised MMFs are becoming a cornerstone of institutional liquidity management. They offer 24/7 settlement, transparent audit trails, and programmable yield – tools that global players like BlackRock, Franklin Templeton, and UBS are now scaling. As Gracie Lin explains, “Institutions want yield, faster liquidity cycles and on-chain risk management”. Tokenised MMFs deliver all three.

Stablecoins: The Bridge Between TradFi and DeFi

If 2025 has a word of the year, in the digital asset world, it’s stablecoins. These assets are emerging as the practical bridge between traditional finance and decentralised rails. As Zodia Custody’s Deborah Algeo explains “Stablecoins have evolved from a payment utility into a balance-sheet tool – a regulated way to earn yield and optimise liquidity”. The data support her optimism. Stablecoins now surpass Visa and Mastercard combined in annual transaction volume. Their programmability allows new forms of instant settlement and composable finance.

Regulation as an Accelerator Not a Brake

Singapore’s secret weapon has always been regulatory coherence. Unlike other jurisdictions, MAS acts as regulator, supervisor, and innovation enabler all in one. This structure gives the city-state a unique ability to align experimentation with oversight, creating a really supportive environment for innovation.

Recent updates to the Financial Services and Markets Act (FSMA) in June 2025 have further clarified rules for digital token service providers, even those serving overseas clients. Some firms have exited as a result but those remaining, including OCBC, OKX, and Zodia Custody, among others, view it as a competitive advantage. “We don’t see regulation as a brake,” says OCBC’s Hu. “We see it as an accelerator that makes innovation sustainable.”

Custody: The Cornerstone of Trust

Underpinning all this progress is a recurring theme: secure, auditable custody.
In a world where institutions no longer ask how to trade crypto but rather how to store it safely, custodians have become the foundation of a new market infrastructure. As assets move on-chain, trust, control, and security remain non-negotiable – and the same principles as seen in traditional finance must apply.

Institutions don’t just need wallets, they need independent custody, daily reconciliation, audit evidence, and counterparty protection. OCBC’s Hu adds: “Institutional custody isn’t just about holding private keys. It’s about embedding digital assets into a framework regulators and auditors already trust.” Julian Sawyer, CEO at Zodia Custody, backed this up during his recent Sibos panel which discussed how regulatory alignment and standards are vital and global consistency in defining custody and segregation is essential for institutional adoption.

Singapore’s Blueprint for the Next Decade

Singapore’s experience shows what responsible scaling looks like. It’s not driven by hype but by infrastructure, governance and collaboration. The lessons are clear: trust and security are foundational; capital efficiency drives adoption; collaboration across banks, custodians and regulators is expanding; and regulation – done well – accelerates progress.

As the event season continues into the close of the year, the takeaways are unmistakable: the next decade of digital assets will be defined not by volatility but by credibility and integration. Singapore’s model – pragmatic, collaborative and operationally rigorous – is proving that digital assets can evolve from speculative instruments into the plumbing of modern finance. And that’s what actually matters.
For more information, take a look at our recent report: ‘What Actually Matters in Digital Asset Infrastructure – A Singapore Perspective’.