Bonds, real estate, even private credit are all turning into digital tokens that trade 24 hours a day. What used to take days to settle on paper now happens instantly on a blockchain. Joining me is Xavier Gomez, Founder of MUWPAY and Board Member at Banque Delubac & Cie. Xavier, welcome to Wall Street to Mena.
Thank you very much.
When you tokenise an asset like a bond or a building, what actually changes?
It is very simple. Tokenising an asset means the legal framework stays exactly the same. You have the right to own a building. A bond is a bond. The only change is the technology. You put this right on the blockchain with automated rules, a smart contract, or even without one, in order to have digital custody and a simple way to move this asset and use it as collateral. That is what is new. And the beauty of the technology? It works 24 hours a day, seven days a week, compared to traditional finance.
What is the actual process of getting an asset tokenised?
Four steps. First, the legal framework. This is very simple — it exists in every country and does not change. Second, the custodian and depository — a simple way to securitise your token and your asset. Third, the issuance of the token — choosing the blockchain once you have the infrastructure. And fourth, the life of the token — sales, dividends, distributions, and other ongoing elements.
What is actually getting tokenised right now? Is it mainly real estate?
This is interesting because as a former banker, tokenisation was originally about facilitating access to illiquid assets — private equity, hedge funds, buildings. But the big trend right now is actually very simple. It is T-bills and treasury bonds. Boring assets. But this is the current trend, and what makes it work is that you can use it as collateral for credit and lending.
How are banks actually approaching this?
At the beginning, every big tier one bank wanted to build a digital asset division internally. They spent millions and millions for nothing concrete. The innovation came from decentralised finance and blockchain companies. Now banks know they have trusted clients and assets under management — but they do not have the technology and agility to build this infrastructure themselves. This is why they are now building partnerships with the big players in this space, to distribute these products or start building an offering.
BlackRock and Franklin Templeton have already launched tokenised funds. Is this the moment it stops being a niche experiment?
Exactly. The question is no longer whether they have to go — it is what the next step is in terms of assets. These asset managers own trillions in assets under management. Of course they will tokenise their other mutual funds. It is not a question of if. It is a question of when the market will grow up.
You worked at Credit Suisse. What is the one thing from traditional banking that tokenisation still cannot replace?
Traditional banks have the culture of the client. Direct contact. Trust. They have assets under management. Fintechs and technology companies have technological agility, but traditional banking has the relationship and the long-term advisory for ultra-high-net-worth clients. If tomorrow you are my client as a private banker, you trust my advice. That is still the force of traditional banking.
For someone with no exposure to tokenisation, where would they even start?
ETFs. There are numerous ETFs on digital assets now — in the US and in Europe. The most important thing is to be in a regulated product in order to protect the final client, whether that is an enterprise, a financial firm, or an individual. And understand the product you are investing in. It sounds complicated but at the end of the day, this is traditional finance — you put it on a technological layer. That is all.
Thank you so much for being with us today, Xavier.
Thank you for the invitation.
