FinTech LIVE Singapore featured an insightful fireside chat on the institutional adoption of digital assets in APAC. 

The session brought together Dan Sleep, Senior Vice President for Digital Assets and Financial Markets at Northern Trust and Boon-Hiong Chan, Head, Securities & Technology Advocacy APAC at Deutsche Bank.

The discussion explored key themes such as bridging traditional finance with digital assets, regulatory developments and the role of tokenisation in institutional investment.

Bridging traditional finance and digital assets

Dan Sleep opens the discussion by highlighting the various ways institutions are navigating digital asset adoption within existing financial frameworks.

He explains that institutions are increasingly looking at business use cases, focusing on efficiency gains, capital savings and risk reduction. 

Technologies such as blockchain and distributed ledger technology (DLT) are playing a key role in integrating digital assets into established processes.

Fixed income markets, in particular, have been early adopters of digital assets due to the efficiencies they offer. 

Dan notes that tokenisation and DLT structures are being leveraged for capital efficiency, operational improvements and risk reduction. 

He also points out that while many early initiatives were limited to pilot programmes, the industry is now moving towards fully developed, commercially viable products.

Boon-Hiong Chan further elaborates on the institutional adoption of digital assets, distinguishing between banks and non-bank financial institutions. 

He notes that asset managers have been leading the charge, with tokenised money market funds and private market assets gaining traction.

He highlights recent examples, such as the tokenisation of a large private credit fund in Singapore, as evidence of the growing use of digital assets for subscription and redemption processes.

FinTech LIVE Singapore 2025

Navigating regulatory developments in APAC

Regulation was another major theme, with both speakers acknowledging the complexity of compliance in the evolving digital asset landscape. 

Boon-Hiong Chan notes that regulatory approaches such as “same risk, same activity, same regulation” have helped avoid duplication and streamlined the adoption of tokenisation. 

However, as use cases become more sophisticated, gaps in regulatory cohesion are emerging.

One example he provides is the challenge of stamp duties and taxation on peer-to-peer trading of tokenised assets. 

While blockchain enables fractionalised ownership, taxation frameworks have not yet fully adapted to these new structures. 

Additionally, the hybrid nature of tokenised securities – simultaneously acting as both registered and bearer securities – raises further regulatory considerations.

Dan highlights the need for greater global regulatory cohesion, especially given that blockchain ecosystems do not adhere to geographical boundaries. 

While regulatory pilot projects have helped provide clarity, the next step will be creating harmonised jurisdictional rules that support cross-border digital asset transactions. 

He acknowledges that in some regions, including the US, regulatory uncertainty remains an issue, potentially delaying large-scale institutional adoption.

The role of tokenisation in institutional investment

The discussion shifts to the opportunities and challenges of tokenisation in institutional investment. 

Dan emphasises that tokenisation is a means to drive efficiencies across various asset classes. 

From money market funds to fixed income instruments such as green bonds, tokenisation allows for greater transparency, improved settlement processes and reduced operational costs. 

He notes that institutions are increasingly focused on how tokenised assets can bring commercial value, whether through capital efficiency, operational improvements, or enhanced liquidity.

Boon-Hiong Chan outlines two key opportunities in tokenisation. 

The first is personalised investment portfolios, which allow investors to allocate assets across different sectors while incorporating ESG-friendly components like tokenised carbon credits. 

He references a Northern Trust report highlighting how DLT can enable personalised, composable portfolios, benefiting both investors and asset managers through automation and cost efficiency.

The second opportunity is intraday collateral and repo markets. 

Tokenisation could enable real-time collateral transfers, improving capital efficiency and minimising counterparty risk. 

However, he also points out a challenge: the broader ecosystem must be ready for such innovations. 

If one party operates on DLT while others do not, the benefits of instant settlement and liquidity optimisation may be limited.

The Institutional Adoption of Digital Assets Fireside at FinTech LIVE Singapore 2025