As corporations and institutions anticipate the widespread use and adoption of digital finance technologies, digital and tokenized assets are expected to become part of the market infrastructure in Asia over the next five years, according to an HSBC survey released early this May.
The banking and financial services group conducted an independent survey of 1,200 businesses and institutional investors in Asia. In the study, HSBC found that more than 90% of respondents believed tokenized assets will become a standard in corporate treasury operations within just five years. Almost nine out of ten Asian respondents believe that tokenization will increase the number and range of investable assets and that this expansion will eventually improve market efficiency.
More than one in two respondents, however, are not knowledgeable enough to assess the impact of digital finance on their businesses. About 25% of respondents either do not think digital finance is a priority or are still awaiting clearer standards and regulations that can change their minds. So evidently, there is a gap between confidence in tokenized assets and adoption readiness.
“While an overwhelming majority of decision-makers believe that the adoption of digital finance is poised to skyrocket, momentum isn’t matched by readiness,” said Jo Miyake, HSBC’s head of banking for Asia and the Middle East.
Meanwhile, in the Philippines, due to high digital wallet usage and expanding opportunities in asset tokenization, digital and tokenized finance is fast gaining ground. Some analysts say asset tokenization could be a billion-dollar industry by 2030.
According to HSBC, the Philippine government has already launched tokenized bonds that can be accessed for as low as PHP 500. The Bangko Sentral ng Pilipinas and other regulatory bodies also support the sector through sandbox initiatives for virtual assets.
“As capital markets and other parts of the financial system become more tokenized, it’s incumbent on industry players such as HSBC to educate and prepare clients for not if, but how, they can innovate and scale via tokenization and other digital technologies,” Miyake said. Industry leaders agree that the transition is merely a matter of timing rather than possibility.
What is Tokenization
Tokenization is the process of creating a digital representation of something physical and tangible. Tokenization can also be used to process large amounts of data efficiently or to protect sensitive data.
The past few years have made it clear that we are transitioning toward the next phase of the internet at a rapid pace. New developments that are leading the charge include Web3. Web3 brazenly claims that it offer the potential of a new, decentralized internet, one that is controlled by participants though blockchains rather than just a handful of corporations.
At the center of Web3 applications is a process called tokenization. In the case of corporations and finance, tokenization is a digitization process to make assets more accessible. Tokenized financial assets have graduated from test to at-scale development.
According to analysis by McKinsey, tokenized market capitalization could reach approximately $2 trillion by 2030 (excluding virtual assets such as Bitcoin and stablecoins like Tether).
The Benefits of Tokenization for Financial Service Providers
There are industry leaders who believe tokenization is expected to transform the structure of financial services and capital markets because it lets asset holders benefit from blockchain, with advantages such as 24/7 operations and data availability. Besides these, blockchain also offers faster transaction settlement and a higher degree of automation.
The Benefits of Using Cryptocurrency for Overseas Filipino Workers for Remittances
Overseas Filipino Workers (OFWs) benefit from using cryptocurrency—specifically stablecoins like USDT or USDC pegged to the U.S. dollar—for remittances by drastically lowering transaction fees, eliminating waiting periods for near-instant transfers, and avoiding unfavorable bank exchange rates.
Using blockchain for remittances provides several key advantages for OFWs:
- Substantially Lower Fees: Traditional remittance channels like banks or physical remittance centers can eat up 6% to 11% of the total remittance transaction. Crypto and stablecoin transfers bypass these middlemen, reducing costs to fractions of a percent.
- Instant Transfers: While wire transfers and traditional remittances can take days to clear, blockchain transactions take only a few minutes, even on weekends or holidays.
- Protection Against Volatility: By using stablecoins, the funds sent by OFWs maintain a steady value pegged to the U.S. dollar. Recipients can also use central bank-approved stablecoins like PHPC to retain a 1:1 value with the Philippine peso directly.
- Direct-to-Wallet Accessibility: Funds can be sent directly to a recipient’s crypto wallet, which is increasingly integrated with popular local e-wallets like GCash and Maya.
- Everyday Utility: Recipients no longer have to queue at physical payout centers. Platforms like Oobit and Coins.ph allow users to receive stablecoins and instantly.
DOPAY Digital Wallets and Crypto Wallets
DOPAY is a relatively new app. DOPAY, through its parent company WIBS PHP INC., is regulated by the Bangko Sentral ng Pilipinas (BSP) and has licenses as an Electronic Money Issuer (EMI) and as a Virtual Asset Service Provider (VASP).
Powered by blockchain technology, DOPAY provides payment, remittance, and financial accessibility through electronic money issuance with its E-Wallet and cryptocurrency exchange with its Crypto Wallet.
DOPAY is an easy-to-use and convenient app that safeguards your information and your money through the policies and procedures required by the BSP.
Through DOPAY, OFWs no longer need to face excessive hidden remittance fees and transfer delays. Through the global features of DOPAY wallets, families of OFWs can receive their needed funds when they need it and in the amount they need it.
Though DOPAY has not yet launched a version of the app that allows point-of-sale payments to merchants using crypto, DOPAY does make it easier for families of Overseas Filipino Workers (OFWs) to receive remittances in the form of cryptocurrency. Through the global account features of the DOPAY app, OFWs can send cryptocurrency to the crypto wallets of their families in the Philippines. This allows the families of OFWs to save money on fees and to experience more convenience in the remittance process.
Download the DOPAY app today!
