{"id":39851,"date":"2025-10-27T08:25:05","date_gmt":"2025-10-27T08:25:05","guid":{"rendered":"https:\/\/eduzim.co.zw\/news\/?p=39851"},"modified":"2025-10-27T08:25:05","modified_gmt":"2025-10-27T08:25:05","slug":"273356","status":"publish","type":"post","link":"https:\/\/eduzim.co.zw\/news\/2025\/10\/27\/273356\/","title":{"rendered":"How tokenisation is rewiring global finance"},"content":{"rendered":"<p> <script data-jetpack-boost=\"ignore\" async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1669381584671856\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- Africa tv video display -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-1669381584671856\"\r\n     data-ad-slot=\"3579572842\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script data-jetpack-boost=\"ignore\">\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p><strong><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-273358 size-full\" src=\"https:\/\/i0.wp.com\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/10\/How-tokenisation-is-rewiring-global-finance.jpg?resize=640%2C341&#038;ssl=1\" alt=\"How tokenisation is rewiring global finance - and why South Africa can't sit it out\" width=\"640\" height=\"341\" srcset=\"https:\/\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/10\/How-tokenisation-is-rewiring-global-finance.jpg 1500w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/blockchain-1500-80-300x160.jpg 300w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/blockchain-1500-80-1024x546.jpg 1024w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/blockchain-1500-80-768x410.jpg 768w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/blockchain-1500-80-150x80.jpg 150w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/blockchain-1500-80-450x240.jpg 450w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/blockchain-1500-80-1200x640.jpg 1200w\" sizes=\"(max-width: 1500px) 100vw, 1500px\"\/>The convergence of<\/strong> blockchain technology with traditional financial markets is no longer speculative \u2013 it is a structural shift redefining how investors access, trade and interact with listed securities. In South Africa, this transformation is already under way, with cryptocurrency exchanges offering tokenised versions of foreign-listed shares. This signals a broader global movement towards more inclusive and efficient capital markets.<\/p>\n<p>As tokenisation matures, virtual asset service providers and blockchain infrastructure are poised to challenge the dominance of traditional platforms used to access locally listed investment products. The competitive landscape is shifting, driven by demand for faster settlement, lower costs and broader asset availability.<\/p>\n<aside class=\"modern-quote pull alignright\">Tokenisation refers to a blockchain-based digital asset that mirrors the economic exposure of a traditional security<\/aside>\n<p>Tokenisation refers to the creation of a blockchain-based digital asset that mirrors the economic exposure of a traditional security. Unlike cryptocurrencies like bitcoin, which derive value from fixed supply, decentralised consensus, network security and their role as a store of value, tokenised securities are backed by real-world assets. This distinction is critical for traditional investors who often struggle to reconcile the abstract and technological value of crypto with the tangible fundamentals of equity markets.<\/p>\n<p>Beyond digitisation, tokenisation represents a reimagining of market infrastructure. It streamlines settlement, reduces barriers to entry and expands access to global investment opportunities. Blockchain technology has become the catalyst for what will be known as the digital economy, a defining feature of the fourth Industrial Revolution.<\/p>\n<h2><strong>How tokenisation works<\/strong><\/h2>\n<p>Tokenisation typically involves a structured vehicle, such as a special-purpose entity, acquiring the underlying shares from a regulated exchange or broker. These shares are held in custody with a traditional financial institution. The sole function of the vehicle is to hold the asset and issue a corresponding digital representation of the asset in the form of a token on a blockchain.<\/p>\n<p>Global leaders in this space include Backed Finance, a Swiss-based platform issuing non-native tokens backed 1:1 by traditional assets, and Securitize, an American firm managing more than US$4.6-billion in tokenised securities infrastructure. Notably, BlackRock, the world\u2019s largest asset manager, has tokenised its USD Institutional Digital Liquidity Fund (BUIDL) on ethereum, with more than $2.8 billion in assets. The fund pays daily interest and supports 24\/7 transfers, showcasing the practical utility of tokenised money market instruments.<\/p>\n<h2><strong>Efficiency and cost reduction<\/strong><\/h2>\n<p>The benefits of tokenised securities are compelling. Settlement times are reduced from T+2 or T+1 to near-instantaneous T+0. Trading becomes a 24\/7 activity, unconstrained by market hours. Fractional ownership allows broader participation, and the reliance on intermediaries \u2013 brokers, custodians, clearing houses \u2013 is significantly diminished. This also leads to a reduction in settlement and transactional costs, making capital markets more efficient and accessible.<\/p>\n<p>In addition, smart contracts on blockchains introduce programmable money \u2013 self-executing logic that automates financial processes. This opens the door to innovations such as AI-managed portfolios that rebalance dynamically and real-time dividend distribution. The fusion of tokenisation and smart contracts is laying the foundation for a more intelligent and responsive financial system.<\/p>\n<figure id=\"attachment_273357\" aria-describedby=\"caption-attachment-273357\" style=\"width: 1500px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-273357 size-full\" src=\"https:\/\/i0.wp.com\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/10\/1761553503_904_How-tokenisation-is-rewiring-global-finance.jpg?resize=640%2C341&#038;ssl=1\" alt=\"The author, Wiehann Olivier of Forvis Mazars South Africa\" width=\"640\" height=\"341\" srcset=\"https:\/\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/10\/1761553503_904_How-tokenisation-is-rewiring-global-finance.jpg 1500w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/wiehann-olivier-1500-800-300x160.jpg 300w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/wiehann-olivier-1500-800-1024x546.jpg 1024w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/wiehann-olivier-1500-800-768x410.jpg 768w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/wiehann-olivier-1500-800-150x80.jpg 150w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/wiehann-olivier-1500-800-450x240.jpg 450w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/10\/wiehann-olivier-1500-800-1200x640.jpg 1200w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\"\/><figcaption id=\"caption-attachment-273357\" class=\"wp-caption-text\">The author, Wiehann Olivier of Forvis Mazars South Africa<\/figcaption><\/figure>\n<h2><strong>South African investment dynamics<\/strong><\/h2>\n<p>In South Africa, natural persons can gain exposure to foreign shares through their single discretionary or foreign investment allowances. However, non-natural persons, such as trusts, face more stringent requirements, often needing to implement complex structures to access offshore investments.<\/p>\n<p>Tokenised securities offer a potential solution. By acquiring digital representations of foreign assets through local crypto asset service providers, these entities can gain exposure without engaging in traditional cross-border investment processes. This opens new avenues for portfolio diversification and strategic asset allocation.<\/p>\n<h2><strong>Global momentum and stablecoin integration<\/strong><\/h2>\n<p>The rise of tokenised securities is closely tied to the adoption of stablecoins, which are increasingly used as settlement assets in digital financial ecosystems. In 2024, stablecoin transaction volumes exceeded those of Visa and Mastercard combined, reaching $27.6-trillion \u2013 a clear signal of blockchain\u2019s scalability and utility.<\/p>\n<p>Regulatory developments such as the US\u2019s Genius Act and the EU\u2019s MiCA framework are accelerating institutional interest in blockchain-based financial instruments. A key milestone in this evolution is Nasdaq\u2019s proposal to enable dual trading of traditional and tokenised shares \u2013 allowing the same security to be traded in both conventional and blockchain-native formats. This model preserves investor protections while introducing blockchain-based settlement and programmability, signalling a shift toward mainstream adoption of tokenised securities.<\/p>\n<h2><strong>Looking ahead<\/strong><\/h2>\n<p>Tokenisation is not merely about digitising assets \u2013 it is about rethinking the architecture of financial markets to better serve investors, institutions and the broader economy. As regulatory frameworks evolve and infrastructure matures, tokenised securities will likely become a cornerstone of modern portfolio construction.<\/p>\n<p>South Africa has an opportunity to lead in this space, provided regulators and market participants embrace innovation responsibly.<\/p>\n<ul>\n<li>The author, Wiehann Olivier, is partner and fintech &amp; digital asset lead, Forvis Mazars South Africa<\/li>\n<\/ul>\n<\/div>\n<p><script data-jetpack-boost=\"ignore\" async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1669381584671856\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- Africa tv video display -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-1669381584671856\"\r\n     data-ad-slot=\"3579572842\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script data-jetpack-boost=\"ignore\">\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n#tokenisation #rewiring #global #finance<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The convergence of blockchain technology with traditional financial markets is no longer speculative \u2013 it is a structural shift redefining&hellip;<\/p>\n","protected":false},"author":1,"featured_media":39852,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[],"class_list":["post-39851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mzansi"],"_links":{"self":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/39851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/comments?post=39851"}],"version-history":[{"count":1,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/39851\/revisions"}],"predecessor-version":[{"id":39853,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/39851\/revisions\/39853"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/media\/39852"}],"wp:attachment":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/media?parent=39851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/categories?post=39851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/tags?post=39851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}