The digital asset landscape has been on an evolutionary trajectory, and 2024 is poised to be a pivotal year that has the potential to reshape the financial industry. As we look into the future, we anticipate several developments that will redefine how digital assets are perceived and deployed:

First Real Cross-Border wCBDC Transaction: This year, we anticipate the watershed moment of an inaugural real cross-border transaction involving wholesale Central Bank Digital Currencies (wCBDCs) take place. This milestone event is poised to demonstrate the practicality and efficiency of utilizing digital currencies across international borders, setting a precedent for future financial transactions.

First Digital Asset Cross-Border Institutional Liquidity Corridor: The emergence of digital asset cross-border institutional liquidity corridors is on the horizon for 2024. These corridors are expected to streamline and enhance the liquidity flow among institutions across different regions, fostering a more seamless and efficient global financial ecosystem.

FMI Platforms Bridging “Tokenization Islands”: Financial Market Infrastructures (FMI) are anticipated to play a pivotal role in bridging the gap between various “tokenization islands”. These platforms will facilitate interoperability and connectivity, allowing assets to move fluidly between different tokenized ecosystems, thus fostering greater accessibility and liquidity.

Institutional Crypto Infrastructure will become the new normal: Institutional adoption of cryptocurrency infrastructure is set to become Business as Usual (BAU) in 2024. The maturation of secure custodial services, trading platforms, and regulatory frameworks will catalyze increased participation from traditional financial institutions in the crypto space.

Rising Popularity of Institutional Digital ID and Verifiable Credential Scheme: The year ahead will witness a surge in the adoption of Institutional Digital ID and Verifiable Credential schemes. These advancements in digital identification and verification mechanisms will bolster security, efficiency, and trust in digital asset transactions, garnering increased confidence from institutional players.

2024 will surely be another interesting year for digital assets and the financial industry. The advent of these anticipated developments is set to transform how we transact, invest, and perceive digital assets, ushering in an era of innovation, collaboration, and heightened institutional involvement. Check back regularly on our SDX knowledge hub for updates and insights as we cover developments in the industry and at SDX.