Standard Chartered CEO: Blockchain to Handle Almost All Global Transactions ‘Eventually’

In a bold prediction highlighting the accelerating convergence of traditional finance and digital assets, Standard Chartered CEO Bill Winters envisions a future where blockchain technology underpins nearly all global transactions. Speaking at Hong Kong FinTech Week on Monday, Winters articulated a vision of a completely rewired financial system driven by the digitization of money and the expansive adoption of blockchain ledgers.

“Our belief…is that pretty much all transactions will settle on blockchains eventually, and that all money will be digital,” Winters stated, emphasizing the transformative potential for the entire financial ecosystem. He further noted that experimentation is crucial to understand the practical implications of this technological shift.

Standard Chartered, dually listed in London and Hong Kong, has been actively expanding its presence in the digital asset space. This includes offering digital asset custody services, establishing trading platforms catering to institutional clients, and developing tokenized products. This strategic move positions the bank at the forefront of the evolving digital finance landscape.

Winters’ remarks coincided with a discussion on Hong Kong’s pivotal role in the global digital asset market. He lauded Hong Kong’s proactive approach to experimentation and regulatory frameworks, acknowledging the city’s leadership alongside Hong Kong Financial Secretary Paul Chan. Hong Kong is actively pursuing its ambition to become a regional crypto hub through a comprehensive digital asset licensing regime and tokenization pilot programs, with Standard Chartered as a key participant.

The concept of tokenization involves representing real-world assets like stocks, bonds, and commodities as digital tokens on a blockchain. This enables fractional ownership, increased liquidity, and enhanced transparency. Stablecoins, pegged to a specific currency, serve as an early example of a functional tokenized asset.

Further demonstrating its commitment to the digital asset space, Standard Chartered, in collaboration with Animoca Brands and HKT, is engaged in plans to launch a Hong Kong dollar-backed stablecoin. This initiative aligns with the new regulatory framework introduced by the city in August and underscores the increasing institutional acceptance of stablecoins as a medium of exchange.

Winters believes that Hong Kong dollar stablecoins can unlock novel avenues for international trade in the digital realm. This perspective echoes similar sentiments from other fintech leaders who foresee significant growth in the tokenized asset market.

Vlad Tenev, CEO of Robinhood Markets, recently described tokenization as an unstoppable “freight train” poised to revolutionize major markets within the next five years, while BlackRock CEO Larry Fink noted in April that tokenizing assets, from stocks and bonds to real estate, would represent a “revolution” for investing via higher efficiency, faster transactions and the ability to access previously illiquid assets.