Banks Push for Unified Multi-Asset Tokenized Money Networks, Challenging Stablecoin Narrative
Sygnum, a Swiss digital asset bank, says institutional clients demand multiple tokenized cash instruments operating interchangeably on a single platform. Along with UBS and PostFinance, Sygnum is piloting public-yet-permissioned blockchain models to balance on-chain finance with regulatory oversight. This push for multi-asset tokenized money networks challenges policymakers' preference for central-bank-led solutions and highlights the limited traction of euro stablecoins lacking strong bank backing. Thomas Eichenberger of Sygnum stated that institutions are not waiting for any single instrument to prevail but seek integration of tokenized deposits, regulated stablecoins, and tokenized money market funds under one trusted regulatory framework. European banks, including a consortium of 37 EU banks planning a digital euro, are actively developing solutions, countering ECB President Lagarde's view that euro stablecoins won't fix financial market issues. Sygnum argues that stablecoins alone cannot bridge the gap and that public-yet-permissioned models are the future. Swiss trials, involving multiple banks and a CHF stablecoin, demonstrate practical implementation.
Key facts
- Sygnum reports institutional demand for multiple tokenized instruments on one platform.
- UBS and Sygnum pilot public-yet-permissioned blockchain for multi-asset tokenized money.
- European banks challenge ECB's preference for central-bank digital currency with private solutions.
- Euro stablecoins lack bank backing and integration with traditional finance, hindering adoption.
- Swiss bank consortium tests CHF stablecoin on shared infrastructure.