Asia: A reference point for the rest of the world
03 March 2026
Hansa Tote explores how digital assets are being used across Asia, discussing why the adoption rates are so high in the region, how utilisation compares to the US and Europe, and what the industry can expect to see next
Image: stock.adobe.com/Zahid0
Digital assets are being used increasingly in the world of securities finance. According to the latest State Street Digital Assets and Emerging Technology Study, the average portfolio allocation across a range of digital assets currently stands at seven per cent, while target allocations are expected to rise to 16 per cent within three years.
These assets are being used across Asia more than anywhere else globally, with the 鈥楢PAC Digital Asset Adoption 2025: Stablecoins, Tokenization & Integration鈥� report from Consensus by CoinDesk, having found that 24.3 per cent of adults across the region use digital assets compared to the global average of 16.9 per cent.
But why does Asia lead the pack? What sets the region apart from the rest of the world? And how are they being used in securities finance?
Paving the way
Digital assets are opening doors to new opportunities, providing institutions with the option to use digital assets as collateral when conducting securities financing transactions (SFT).
This is a marked difference between traditional SFTs. Simon Kellaway, global head of sales, FSS and regional FSS head, Greater China and North Asia at Standard Chartered, explains that typically, clients pledge assets to secure funding, support trading, or reduce counterparty risk, with the assets usually being cash, bonds, equities, or high-quality institutional securities.
Standard Chartered is currently facilitating this through a partnership with OKX, a cryptocurrency exchange and global onchain technology company. The firms aim to pilot a collateral mirroring programme in Dubai, in partnership with Franklin Templeton鈥檚 BENJI token, to allow institutional clients to use tokenised money market funds (MMFs) and crypto-currencies as collateral for trading 鈥� something Standard Chartered is planning to expand into Asia in 2026.
From the perspective of regional portfolios, SFT foundations and primary markets are being built and broadened, according to Boon Hiong Chan, applied industry innovation lead, head of securities market and technology advocacy APAC at Deutsche Bank. He adds that, in the last two years, Asia鈥檚 tokenisation moved from the proof of concept (PoC) stage to production across tokenised MMFs for institutional cash and collateral, digital cash equivalents, tokenised bonds, and onchain repo workflows.
There are a number of frameworks also being introduced to facilitate the use of digital assets in securities financing, such as Singapore鈥檚 Project Guardian 鈥� an initiative between policymakers and the financial industry to enhance the liquidity and efficiency of financial markets via asset tokenisation. Chan says Project Guardian has moved tokenisation from pilots to repeatable practices, having also integrated delivery versus payment (DvP) and payment versus payment (PvP) controls on shared ledgers for production use.
There are also financial market infrastructures (FMIs) that are normalising digital issuance and settlement such as Hong Kong鈥檚 Project Ensemble, which aims to shape the tokenisation ecosystem in the country by bringing together experts and industry pioneers to design, test, and implement a framework for tokenisation. In parallel, Chan highlights that the Hong Kong government鈥檚 2024鈥�25 tokenised green bonds have integrated digital money settlement and widened access through the Central Moneymarkets Unit鈥檚 (CMU) links with Euroclear and Clearstream.
Further, Chan says policy advancements are allowing pilots to be converted into live liquidity, explaining that in January of this year, Korea amended the Capital Markets and Electronic 网爆吃瓜 Acts in order to recognise security tokens and onchain records, which opened the door for onchain repo/lending collateral over time.
Discussing Japan 网爆吃瓜 Clearing Corporation鈥檚 collaboration with the Depository Trust and Clearing Corporation鈥檚 (DTCC) PoC, he explains that their mapping of tokenised collateral workflows through central counterparty clearing houses (CCPs) explored not only the efficiency and liquidity of collateral, but also sought to identify new potential business opportunities.
A reference point
With digital assets being so prevalent across Asia compared to the rest of the world, we must explore what sets it apart from everywhere else.
APAC is a 鈥済lobal reference point鈥�, according to Chan, especially for moving digital asset initiatives from controlled regulator-led pilots into operational, commercially, and compliance-aligned deployment. He describes the region鈥檚 approach as 鈥渄istinctive鈥�, highlighting the fact it is regulator-led, and brings industry participants together in order to build an ecosystem and ground digital assets in disciplined risk management.
Chan notes this is a stark contrast to the US, which draws upon its intrinsic strengths as the digitally native Web3 epicentre, with the region鈥檚 entrepreneurial intensity being coupled with institutional collaboration to move innovation into scale and adoption, from the organic to the regulated space. He adds that in the US, FMIs such as DTCC and Nasdaq have taken leadership positions, aided by regulators, to steer all capital market structures towards tokenisation and modernised operating models. 鈥淒igital asset friendly legislations like CLARITY and GENIUS, without the overhang of strict Basel prudential treatment of crypto assets, amplify its depth and pace of adoption,鈥� he states.
He describes Europe as advancing through analytical, regulation-anchored precision to identify where digital assets can be incorporated with clarity and policy confidence.
Summarising the differences, Chan states: 鈥淎PAC鈥檚 regulator?FMI partnerships are producing operational rails in unique ways, solving for a lack of Web3 depth and ecosystem and a need to scale fast, be safe, and competitively cost effective.
鈥淎sia is in a position to proactively shape global tokenisation standards, leveraging its regulatory leadership in growing together with the market, and insights from tackling inherent challenges of diverse legal and regulatory factors and cross?border depth. For global investors, APAC offers a fast-paced differentiated environment where different maturity stages mean different starting opportunities.鈥�
Across Asia, digital assets technology is increasingly being applied as financial market infrastructure, rather than purely as a speculative investment asset, explains Steven Hu, head of digital assets at OCBC. APAC is leading in applying digital assets to real-economy financial workflows, compared to the US leading in market liquidity and Europe being ahead regarding regulatory standardisation.
He adds: 鈥淎t OCBC, we are seeing strong momentum in areas such as tokenisation of financial assets 鈥� including bonds, funds, and cash-equivalent instruments, onchain settlement, and collateral management, while regulated stablecoins and tokenised deposits are gaining traction for payments, treasury, and cross-border settlement.鈥�
Adoption rates
Digital asset adoption rates are the highest across APAC compared to the rest of the world 鈥� but why are they so far ahead?
For a region famed for forward-thinking technological innovations, it is no surprise that adoption rates are so high due to the technology addressing real financial infrastructure needs, argues Hu.
Many Asian economies are deeply trade connected and cross-border by nature, something Hu believes can be made easier by digital assets reducing frictions in payments, FX, and settlement 鈥� solving tangible business problems. He highlights that large parts of Asia 鈥渓eapfrogged鈥� typical banking interfaces into digital wallets and super-apps, making tokenised payment and blockchain-based rails more intuitive for users and businesses.
For Kellaway, the role of regulators is why adoption rates are so high across APAC, despite the fragmented nature of the region. He notes that Singapore has a clear licensing framework, Hong Kong鈥檚 regulators are proactively fostering a robust and compliant digital assets ecosystem, and Japan has established early consumer protection and exchange oversight.
Hu also holds the region鈥檚 regulators accountable for the level of participation, noting their role in shaping safe innovation in Singapore, Hong Kong, Malaysia, and Indonesia, with regulators having been active in launching industry pilots, sandbox programmes, and stablecoin frameworks in order to test institutional use cases.
What next?
For a region already miles ahead of the rest of the world, does the future hold anything other than an upward trajectory for digital assets in Asia? It appears not.
鈥淭he rapid adoption of digital assets in this region presents unprecedented opportunities for innovation and growth. It also attracts digital talent to the region and fosters creativity and innovation,鈥� says Kellaway.
He predicts that as regulations provide further clarity, institutional demand and adoption will further increase. Kellaway attributes this to key hubs such as Hong Kong and Singapore refining rules to make their jurisdictions friendly for digital assets service providers to establish their presence in their countries, as well as regulators in Malaysia, Indonesia, and Thailand also exploring frameworks to enhance access and integrate digital assets into the broader financial ecosystem.
Hu states he expects to see three shifts that will shape the next phase of development for APAC鈥檚 digital asset market.
鈥淔irst, onchain cash becomes normal. That includes stablecoins, tokenised deposits, or even central bank digital currencies,鈥� he states, before highlighting that digital cash would become the payment leg of a digital finance system.
Secondly, he expects funds and fixed income products to go fully digital and onchain collateral and repo structures will become widely adopted, fitting the region鈥檚 demand for yield, liquidity, transparency, and more dynamic ways to trade.
Third and finally, Hu predicts interoperability frameworks will begin to form across Singapore, Hong Kong, and Malaysia, something he describes as 鈥渟imple but powerful鈥� with onchain cash settling onchain assets 鈥� 鈥渢hat is where real efficiency happens鈥�.
Hu is under no illusions that the market is perfect, stating there remains gaps that need closing, particularly around cross-border standards and building the required level of talent. He notes that collaborations such as Project Guardian and the Monetary Authority of Singapore鈥檚 (MAS鈥檚) BLOOM (borderless, liquid, open, online, multi-currency) initiative will play an important role in this respect. He insists that once regulation, infrastructure, and standards line up, digital assets will shift from pilots to true production scale.
鈥淚鈥檓 also confident that Southeast Asia will not just be adopting digital assets. It will be leading the world in bringing them into mainstream finance.鈥�
Continuing the analysis into the future of Asia, Chan suggests that tokenised MMFs will progress from 鈥渋nvestable鈥� to financeable in treasury and early repo/lending pilots, supported by reusable funds/fixed?income playbooks from Singapore鈥檚 Project Guardian, Hong Kong鈥檚 Ensemble, ASEAN+3 Bond Market Forum work, and Japan鈥檚 collateral PoCs.
鈥淟ive rails deepen as tokenised deposits and digital money take root while tokenised government and corporate bonds increase in issuance, trading, and custody, providing settlement and other benefits to create a positive loop,鈥� Chan adds. 鈥淐urrent rules continue to be updated for an optimal fit-for-purpose environment without onerous compliance burdens to drag progress.鈥�
Despite Asia being the frontrunner in the world of digital assets, there is always the risk that the region will become sidelined, warns Chan. He highlights the region鈥檚 lack of inherent cross-border scalability remains a key drag, due to multiple legal regimes, data rules, and chain choices creating fragmentation that slows PvP/DvP across markets, while keeping interoperability bespoke, therefore thinning secondary?market depth and collateral portability. He also suggests the narrow, domestic pilots may entrench silos if shared corridors and FMI-grade interoperability are not agreed.
He concludes: 鈥淭he foreseeable next level of success for Asia to unlock hinges on converting domestic progress into standardised, cross?border corridors for tokenised cash and securities, with consistent eligibility/control constructs and lifecycle servicing to facilitate modern digital securities financing to bolster Asia capital market dynamism and robustness.鈥�
These assets are being used across Asia more than anywhere else globally, with the 鈥楢PAC Digital Asset Adoption 2025: Stablecoins, Tokenization & Integration鈥� report from Consensus by CoinDesk, having found that 24.3 per cent of adults across the region use digital assets compared to the global average of 16.9 per cent.
But why does Asia lead the pack? What sets the region apart from the rest of the world? And how are they being used in securities finance?
Paving the way
Digital assets are opening doors to new opportunities, providing institutions with the option to use digital assets as collateral when conducting securities financing transactions (SFT).
This is a marked difference between traditional SFTs. Simon Kellaway, global head of sales, FSS and regional FSS head, Greater China and North Asia at Standard Chartered, explains that typically, clients pledge assets to secure funding, support trading, or reduce counterparty risk, with the assets usually being cash, bonds, equities, or high-quality institutional securities.
Standard Chartered is currently facilitating this through a partnership with OKX, a cryptocurrency exchange and global onchain technology company. The firms aim to pilot a collateral mirroring programme in Dubai, in partnership with Franklin Templeton鈥檚 BENJI token, to allow institutional clients to use tokenised money market funds (MMFs) and crypto-currencies as collateral for trading 鈥� something Standard Chartered is planning to expand into Asia in 2026.
From the perspective of regional portfolios, SFT foundations and primary markets are being built and broadened, according to Boon Hiong Chan, applied industry innovation lead, head of securities market and technology advocacy APAC at Deutsche Bank. He adds that, in the last two years, Asia鈥檚 tokenisation moved from the proof of concept (PoC) stage to production across tokenised MMFs for institutional cash and collateral, digital cash equivalents, tokenised bonds, and onchain repo workflows.
There are a number of frameworks also being introduced to facilitate the use of digital assets in securities financing, such as Singapore鈥檚 Project Guardian 鈥� an initiative between policymakers and the financial industry to enhance the liquidity and efficiency of financial markets via asset tokenisation. Chan says Project Guardian has moved tokenisation from pilots to repeatable practices, having also integrated delivery versus payment (DvP) and payment versus payment (PvP) controls on shared ledgers for production use.
There are also financial market infrastructures (FMIs) that are normalising digital issuance and settlement such as Hong Kong鈥檚 Project Ensemble, which aims to shape the tokenisation ecosystem in the country by bringing together experts and industry pioneers to design, test, and implement a framework for tokenisation. In parallel, Chan highlights that the Hong Kong government鈥檚 2024鈥�25 tokenised green bonds have integrated digital money settlement and widened access through the Central Moneymarkets Unit鈥檚 (CMU) links with Euroclear and Clearstream.
Further, Chan says policy advancements are allowing pilots to be converted into live liquidity, explaining that in January of this year, Korea amended the Capital Markets and Electronic 网爆吃瓜 Acts in order to recognise security tokens and onchain records, which opened the door for onchain repo/lending collateral over time.
Discussing Japan 网爆吃瓜 Clearing Corporation鈥檚 collaboration with the Depository Trust and Clearing Corporation鈥檚 (DTCC) PoC, he explains that their mapping of tokenised collateral workflows through central counterparty clearing houses (CCPs) explored not only the efficiency and liquidity of collateral, but also sought to identify new potential business opportunities.
A reference point
With digital assets being so prevalent across Asia compared to the rest of the world, we must explore what sets it apart from everywhere else.
APAC is a 鈥済lobal reference point鈥�, according to Chan, especially for moving digital asset initiatives from controlled regulator-led pilots into operational, commercially, and compliance-aligned deployment. He describes the region鈥檚 approach as 鈥渄istinctive鈥�, highlighting the fact it is regulator-led, and brings industry participants together in order to build an ecosystem and ground digital assets in disciplined risk management.
Chan notes this is a stark contrast to the US, which draws upon its intrinsic strengths as the digitally native Web3 epicentre, with the region鈥檚 entrepreneurial intensity being coupled with institutional collaboration to move innovation into scale and adoption, from the organic to the regulated space. He adds that in the US, FMIs such as DTCC and Nasdaq have taken leadership positions, aided by regulators, to steer all capital market structures towards tokenisation and modernised operating models. 鈥淒igital asset friendly legislations like CLARITY and GENIUS, without the overhang of strict Basel prudential treatment of crypto assets, amplify its depth and pace of adoption,鈥� he states.
He describes Europe as advancing through analytical, regulation-anchored precision to identify where digital assets can be incorporated with clarity and policy confidence.
Summarising the differences, Chan states: 鈥淎PAC鈥檚 regulator?FMI partnerships are producing operational rails in unique ways, solving for a lack of Web3 depth and ecosystem and a need to scale fast, be safe, and competitively cost effective.
鈥淎sia is in a position to proactively shape global tokenisation standards, leveraging its regulatory leadership in growing together with the market, and insights from tackling inherent challenges of diverse legal and regulatory factors and cross?border depth. For global investors, APAC offers a fast-paced differentiated environment where different maturity stages mean different starting opportunities.鈥�
Across Asia, digital assets technology is increasingly being applied as financial market infrastructure, rather than purely as a speculative investment asset, explains Steven Hu, head of digital assets at OCBC. APAC is leading in applying digital assets to real-economy financial workflows, compared to the US leading in market liquidity and Europe being ahead regarding regulatory standardisation.
He adds: 鈥淎t OCBC, we are seeing strong momentum in areas such as tokenisation of financial assets 鈥� including bonds, funds, and cash-equivalent instruments, onchain settlement, and collateral management, while regulated stablecoins and tokenised deposits are gaining traction for payments, treasury, and cross-border settlement.鈥�
Adoption rates
Digital asset adoption rates are the highest across APAC compared to the rest of the world 鈥� but why are they so far ahead?
For a region famed for forward-thinking technological innovations, it is no surprise that adoption rates are so high due to the technology addressing real financial infrastructure needs, argues Hu.
Many Asian economies are deeply trade connected and cross-border by nature, something Hu believes can be made easier by digital assets reducing frictions in payments, FX, and settlement 鈥� solving tangible business problems. He highlights that large parts of Asia 鈥渓eapfrogged鈥� typical banking interfaces into digital wallets and super-apps, making tokenised payment and blockchain-based rails more intuitive for users and businesses.
For Kellaway, the role of regulators is why adoption rates are so high across APAC, despite the fragmented nature of the region. He notes that Singapore has a clear licensing framework, Hong Kong鈥檚 regulators are proactively fostering a robust and compliant digital assets ecosystem, and Japan has established early consumer protection and exchange oversight.
Hu also holds the region鈥檚 regulators accountable for the level of participation, noting their role in shaping safe innovation in Singapore, Hong Kong, Malaysia, and Indonesia, with regulators having been active in launching industry pilots, sandbox programmes, and stablecoin frameworks in order to test institutional use cases.
What next?
For a region already miles ahead of the rest of the world, does the future hold anything other than an upward trajectory for digital assets in Asia? It appears not.
鈥淭he rapid adoption of digital assets in this region presents unprecedented opportunities for innovation and growth. It also attracts digital talent to the region and fosters creativity and innovation,鈥� says Kellaway.
He predicts that as regulations provide further clarity, institutional demand and adoption will further increase. Kellaway attributes this to key hubs such as Hong Kong and Singapore refining rules to make their jurisdictions friendly for digital assets service providers to establish their presence in their countries, as well as regulators in Malaysia, Indonesia, and Thailand also exploring frameworks to enhance access and integrate digital assets into the broader financial ecosystem.
Hu states he expects to see three shifts that will shape the next phase of development for APAC鈥檚 digital asset market.
鈥淔irst, onchain cash becomes normal. That includes stablecoins, tokenised deposits, or even central bank digital currencies,鈥� he states, before highlighting that digital cash would become the payment leg of a digital finance system.
Secondly, he expects funds and fixed income products to go fully digital and onchain collateral and repo structures will become widely adopted, fitting the region鈥檚 demand for yield, liquidity, transparency, and more dynamic ways to trade.
Third and finally, Hu predicts interoperability frameworks will begin to form across Singapore, Hong Kong, and Malaysia, something he describes as 鈥渟imple but powerful鈥� with onchain cash settling onchain assets 鈥� 鈥渢hat is where real efficiency happens鈥�.
Hu is under no illusions that the market is perfect, stating there remains gaps that need closing, particularly around cross-border standards and building the required level of talent. He notes that collaborations such as Project Guardian and the Monetary Authority of Singapore鈥檚 (MAS鈥檚) BLOOM (borderless, liquid, open, online, multi-currency) initiative will play an important role in this respect. He insists that once regulation, infrastructure, and standards line up, digital assets will shift from pilots to true production scale.
鈥淚鈥檓 also confident that Southeast Asia will not just be adopting digital assets. It will be leading the world in bringing them into mainstream finance.鈥�
Continuing the analysis into the future of Asia, Chan suggests that tokenised MMFs will progress from 鈥渋nvestable鈥� to financeable in treasury and early repo/lending pilots, supported by reusable funds/fixed?income playbooks from Singapore鈥檚 Project Guardian, Hong Kong鈥檚 Ensemble, ASEAN+3 Bond Market Forum work, and Japan鈥檚 collateral PoCs.
鈥淟ive rails deepen as tokenised deposits and digital money take root while tokenised government and corporate bonds increase in issuance, trading, and custody, providing settlement and other benefits to create a positive loop,鈥� Chan adds. 鈥淐urrent rules continue to be updated for an optimal fit-for-purpose environment without onerous compliance burdens to drag progress.鈥�
Despite Asia being the frontrunner in the world of digital assets, there is always the risk that the region will become sidelined, warns Chan. He highlights the region鈥檚 lack of inherent cross-border scalability remains a key drag, due to multiple legal regimes, data rules, and chain choices creating fragmentation that slows PvP/DvP across markets, while keeping interoperability bespoke, therefore thinning secondary?market depth and collateral portability. He also suggests the narrow, domestic pilots may entrench silos if shared corridors and FMI-grade interoperability are not agreed.
He concludes: 鈥淭he foreseeable next level of success for Asia to unlock hinges on converting domestic progress into standardised, cross?border corridors for tokenised cash and securities, with consistent eligibility/control constructs and lifecycle servicing to facilitate modern digital securities financing to bolster Asia capital market dynamism and robustness.鈥�
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