At the World Economic Forum in Davos, Switzerland, Wednesday (Jan. 21), panelists signaled that real-world financial use cases are beginning to take hold, particularly in payments and settlement.
While artificial intelligence has dominated headlines, the discussion, “Is Tokenization the Future?,” made clear that tokenization work has continued steadily in the background, setting the stage for broader embrace.
Euroclear CEO Valérie Urbain framed tokenization not as a rupture with existing market structures, but as a natural evolution that expands access while lowering costs.
She said tokenization can “reach out to a bigger range of investors” while also helping issuers by “reducing the time to market” and “reducing the cost of issuing.”
Urbain pointed to early institutional experiments, including the tokenization of commercial paper in France, as evidence that entire market ecosystems, including issuers, investors and infrastructure, must move together for tokenization to scale. She described the initiative as large enough to be meaningful but contained enough to allow the market to learn before expanding further.
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Tokenization as a Problem Solver
Coinbase CEO Brian Armstrong said tokenization addresses structural inefficiencies in the financial system, particularly around settlement speed, fees and access.
Tokenization enables real-time settlement and lower fees, he said, but he emphasized that its most powerful impact is expanding participation in investment markets.
Armstrong highlighted what he described as a global “unbrokered” population—roughly 4 billion adults who lack access to invest in high-quality assets—and positioned stablecoins as the first successful expression of tokenization’s potential.
From his perspective, stablecoins demonstrate how tokenized representations of assets can unlock broader participation across borders, he said.
Scale, Stablecoins and Cross-Border Payments
Ripple CEO Brad Garlinghouse reinforced the idea that stablecoins are tokenization’s first scaled use case. He cited rapid growth in stablecoin transaction volumes and pointed to cross-border payments as an area where tokenized money is already showing measurable impact.
Ripple’s focus is on bridging traditional finance and blockchain networks, Garlinghouse said, adding that tokenization’s value lies in connecting existing systems rather than replacing them outright. In cross-border payments, that bridge reduces friction, settlement delays and costs that have long burdened international commerce.
Regulation as an Enabler, Not an Obstacle
French central bank governor François Villeroy de Galhau pushed back on the idea that regulation and innovation are inherently opposed. Tokenization and stablecoins “will bring progress in global finance delivery,” he said, including lower transaction costs and improved payments.
However, he warned that unregulated private money could threaten monetary sovereignty.
“Regulation is not the enemy of innovation … it’s a guarantee of trust,” he said.
Central banks must provide a public anchor, potentially through wholesale central bank digital currencies, while allowing regulated private tokenized money to operate alongside it, he said.
The US Legislative Backdrop
The panel also highlighted legislative momentum in the United States. Armstrong described ongoing negotiations around crypto market structure and stablecoin legislation, saying regulation should not be used to limit competition or favor incumbents. Consumers benefit most when regulated banks and crypto firms compete on equal footing.
Reflecting on Ripple’s past regulatory battles, Garlinghouse said clarity matters more than perfection, adding that clear rules are preferable to prolonged uncertainty.
Momentum Builds, but Not Without Conditions
Momentum emerged as a recurring theme. Garlinghouse said the pace of adoption has accelerated as U.S. policy has shifted toward a more constructive stance on cryptocurrency and blockchain innovation. Still, he cautioned that tokenization must deliver tangible benefits, warning against tokenizing assets “just to tokenize something.”
That pragmatism resonated across the panel, particularly as participants discussed which tokenized transactions are gaining traction first, spanning payments, settlement, collateral management and cross-border transfers.
Yield, Store of Value and Competing Models
Yield emerged as a dividing line between different forms of tokenized money. Armstrong said that allowing rewards on stablecoins could benefit consumers and improve competitiveness, particularly as other jurisdictions explore interest-bearing digital currencies.
Standard Chartered CEO Bill Winters took a more segmented view.
“Tokens are going to be used for two things,” he said. “They’ll be used as a medium of exchange,” with “no particular need to bear interest for a medium of exchange because they’ll be instantly transmitted. And they’ll be used as a store of value.”
Real Assets, Bitcoin and Skepticism
Real-world assets will eventually settle in digital form, even if the path varies by jurisdiction and regulation, Winters said.
There was debate during the panel discussion over the emergence of a ‘bitcoin standard.”
Armstrong framed Bitcoin as an inflation-resistant alternative to fiat systems, stating that “we are also seeing the birth of a new monetary system that I would call the ‘bitcoin standard’ instead of the gold standard.”
Villeroy de Galhau expressed skepticism, saying money is a core element of democratic sovereignty and public accountability.
“I always keep repeating that money … for centuries has been a public-private partnership and you need a public anchor,” he said.
In another observation, Villeroy de Galhau summed up what might be termed the panel’s cautious optimism, saying tokenization and stablecoins “might be the name of the game this year.”
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